Bulgaria's OTZK Cuts Zinc, Lead Output Forecast

SOFIA, July 12 -- OTZK OTZK.BB, Bulgaria's second largest zinc and lead smelter, will produce less zinc and lead then initially planned this year due to maintenance halts, the chairman of its supervisory board said on Friday.

Valentin Zahariev told Reuters the repair works that took place in the spring will cut both zinc and lead production by 3,000 tonnes to 18,500 T of zinc and 18,000 T of lead in 2010.

"The production will be less than planned due to technical reasons. We had repairs for two months during which we worked at decreased capacity," Zahariev said in a telephone call.

The plant, controlled by Bulgaria's Intertrust Holding, received on Friday a green light to build a new 45 million euros ($57.07 million) lead facility that will boost capacity to 60,000 tonnes and will bring OTZK production in line with EU environmental standards.

"Today, the environment ministry's council backed our project. We will now start design studies, apply for different permits and plan to start actual construction in the summer next year," Zahariev said.

The smelter, in the southern Bulgarian town of Kurdzhali, was on track with building an 85 million euro zinc plant that should become operational at the end of 2011 and will have an output capacity of 45,000 tonnes, he said.

Zahariev said the smelter will most likely report a small loss in the second quarter, but will turn to profit for the whole year. It reported a net profit of 5.1 million levs ($3.31 million) in 2009.

OTZK ZINC AND LEAD PRODUCTION (in tonnes)