Chelyabinsk Zinc Plant Reports 5.5% Production Increase for the H1 2008

Chelyabinsk Zinc Plant announces its production results for the first half of 2008.

January through June 2008, Chelyabinsk Zinc Plant (CZP) produced 84,816 tn of SHG zinc and zinc based alloys, an increase of 5.5% as compared to the same period of 2007 (80,385 tn). 51.9% of salable metal was supplied to the domestic market.

CZP’s subsidiary, Nova Zinc LLC, operator of Akzhal zinc and lead ore mine in Kazakhstan, processed 668.8 thousand tn for the first half of 2008, 3.02% more than for the same period of 2007 (649.2 thousand tn). Average zinc content in the ore for the period was 2.18% with average lead content of 0.52%, compared to 2.7% and 0.59% respectively a year ago. Production of zinc in zinc concentrate for the first half of 2008 decreased 17.8% to 13,300 tn over the prior year result of the same period of 16,176 tn. Lead in lead concentrate production decreased by 9.66% to 2,843 tn (vs. 3,147 in the first half of 2007).

CZP’s subsidiary, The Brock Metal Company Limited (the leading UK supplier of zinc and aluminum die-casting alloys) sold 14,613 tn of products January through June 2008, 12.2% less than for the same period of 2007 (16,633 tn).