ENRC Ferroalloys, Iron Ore Output Drop On Unscheduled Repairs

Industry News 10:01:54AM Feb 02, 2012 Source:SMM

LONDON Feb 01, 2012 (Dow Jones) -- U.K.-listed, Kazakhstan-focused miner Eurasian Natural Resources PLC (ENRC.LN) Wednesday reported lower fourth quarter saleable ferroalloys and iron ore output due to unscheduled repairs.

By contrast, the alumina and aluminum and energy divisions each posted higher output on year in the fourth quarter as the divisions operated at effectively full capacity, the FTSE-100 miner said.

The London-listed Kazakh miner said total saleable ferroalloys production for the three months to Dec. 31 fell 10% from a year ago to 360,000 metric tons, following an emergency stoppage of furnace 63 at Aksu and an indefinite production halt at Tuoli starting from September. ENRC said furnace 63 returned to full operation in December.

Saleable ferrochrome production fell 9.8% to 294,000 tons.

Meanwhile, the amount of iron ore the company extracted from the ground dropped 3.3% on year to 10.52 million tons in the fourth quarter, while primary concentrate production fell 3.8% to 4.22 million tons.

ENRC said mined and primary concentrate iron ore production was hit by a number of factors, including temporary railway transit restrictions on transportation of Kurzhunkul ore to the processing plant and overloaded ore storage facilities on production sites.

ENRC's ferroalloys division accounted for about 34% of the company's underlying earnings before interest, taxes, depreciation and amortization, or Ebitda, in the first half of 2011. Iron ore accounted for 43% of the company's underlying Ebitda in 2011.

ENRC CEO Felix Vulis said iron ore and aluminum production was hit by unforeseen maintenance but swift action was taken. "Having overcome production issues in the fourth quarter, we anticipate a consistently strong operational performance across our diversified range of commodities in 2012," he added.

Aluminum output was 63,000 tons for the quarter, a 1.6% rise from a year earlier.

ENRC's shares closed Tuesday down 1.4% at 690.5p. The company's shares are up 8.7% since the beginning of the year, buoyed by a $1.25 billion deal with First Quantum Minerals Ltd (FM.T) which, among other things, aims to settle all legal disputes regarding ENRC's purchase of an indirect majority stake in the disputed Kolwezi copper and cobalt project in the Congo.

 

Key Words:  ENRC  iron ore  iron ore output 

ENRC Ferroalloys, Iron Ore Output Drop On Unscheduled Repairs

Industry News 10:01:54AM Feb 02, 2012 Source:SMM

LONDON Feb 01, 2012 (Dow Jones) -- U.K.-listed, Kazakhstan-focused miner Eurasian Natural Resources PLC (ENRC.LN) Wednesday reported lower fourth quarter saleable ferroalloys and iron ore output due to unscheduled repairs.

By contrast, the alumina and aluminum and energy divisions each posted higher output on year in the fourth quarter as the divisions operated at effectively full capacity, the FTSE-100 miner said.

The London-listed Kazakh miner said total saleable ferroalloys production for the three months to Dec. 31 fell 10% from a year ago to 360,000 metric tons, following an emergency stoppage of furnace 63 at Aksu and an indefinite production halt at Tuoli starting from September. ENRC said furnace 63 returned to full operation in December.

Saleable ferrochrome production fell 9.8% to 294,000 tons.

Meanwhile, the amount of iron ore the company extracted from the ground dropped 3.3% on year to 10.52 million tons in the fourth quarter, while primary concentrate production fell 3.8% to 4.22 million tons.

ENRC said mined and primary concentrate iron ore production was hit by a number of factors, including temporary railway transit restrictions on transportation of Kurzhunkul ore to the processing plant and overloaded ore storage facilities on production sites.

ENRC's ferroalloys division accounted for about 34% of the company's underlying earnings before interest, taxes, depreciation and amortization, or Ebitda, in the first half of 2011. Iron ore accounted for 43% of the company's underlying Ebitda in 2011.

ENRC CEO Felix Vulis said iron ore and aluminum production was hit by unforeseen maintenance but swift action was taken. "Having overcome production issues in the fourth quarter, we anticipate a consistently strong operational performance across our diversified range of commodities in 2012," he added.

Aluminum output was 63,000 tons for the quarter, a 1.6% rise from a year earlier.

ENRC's shares closed Tuesday down 1.4% at 690.5p. The company's shares are up 8.7% since the beginning of the year, buoyed by a $1.25 billion deal with First Quantum Minerals Ltd (FM.T) which, among other things, aims to settle all legal disputes regarding ENRC's purchase of an indirect majority stake in the disputed Kolwezi copper and cobalt project in the Congo.

 

Key Words:  ENRC  iron ore  iron ore output