METALLOINVEST Announces Second Quarter Operational Results
08/02/2013 - METALLOINVEST, a Russia-based iron ore and HBI producer, announced its operational results for the second quarter of 2013.
Management comments
- In Q2 2013, the company increased iron ore production to 9.7 million tonnes, a 1.1% increase q-o-q
- Pellet production amounted to 5.5 million tonnes in Q2 2013, a 2.8% decrease q-o-q
- In line with annual budget, HBI/DRI production decreased by 6.0% q-o-q to 1.3 million tonnes in Q2 2013
- Iron ore products shipments’ breakdown by region remained largely unchanged in Q2 2013. Russia and the CIS remained the key markets. Shipments to this region amounted to 4.1 million tonnes, representing 59% of the Company’s total iron ore products shipments. Europe, China and the rest of Asia accounted for 17%, 11% and 11% of shipments, respectively
Mining Segment
- LGOK increased iron ore concentrate production by 2.6% q-o-q to 5.2 million tonnes in Q2 2013, due to increased productivity resulting from improved quality characteristics of the iron ore. Iron ore concentrate production at MGOK amounted to 4.1 million tonnes, a decrease of 0.7% q-o-q
- In Q2 2013, LGOK pellet production remained in line with the Q1 2013 level of 2.2 million tonnes. MGOK pellet production declined by 4.0% q-o-q to 2.4 million tonnes due to scheduled major maintenance works at Pellet Plant No. 1
- HBI production at LGOK in Q2 2013 amounted to 0.7 million tonnes, a reduction of 4.5% q-o-q. The decrease was driven by the scheduled ramp up of maintenance works at HBI-1 and HBI-2 plants
- In Q2 2013, LGOK increased shipments of iron ore concentrate by 4.0% q-o-q to 2.4 million tonnes and MGOK by 6.5% q-o-q to 1.5 million tonnes. The increase in iron ore concentrate shipments resulted from the reduction in output of HBI at LGOK and of pellets at MGOK due to the ramp up of scheduled maintenance works
Steel Segment
- OEMK decreased pellet production by 6.8% q-o-q to 0.9 million tonnes in Q2 2013 due to scheduled maintenance works at the Pellet Plant and major maintenance works at the DRI facilities #1 and #2. Production of DRI also decreased by 7.5% q-o-q to 0.7 million tonnes
- In Q2 2013, crude steel production at OEMK decreased by 2.3% q-o-q to 0.8 million tonnes as a result of scheduled ramp up of maintenance works
- Ural Steel decreased crude steel production by 27.6% q-o-q to 0.3 million tonnes in Q2 2013 as a result of planned closure of the open-hearth plant in order to increase economic efficiency and environmental safety
- As a result of the reduction in the steel production capacity, Ural Steel increased pig iron shipments by 45.8% q-o-q to 0.4 million tonnes
