METALLOINVEST announces operational results for Q2 2012

METALLOINVEST, a leading global iron ore and HBI producer based in Russia, today announces its operational results for the second quarter of 2012.

In Q2 2012, the Company’s iron ore production reached 10.0 mn tonnes, representing a 1.4% q-o-q increase.

The Company’s production of high value-added iron ore products – pellets and HBI/DRI – decreased by 2.4% and 5.6% q-o-q respectively due to the planned maintenance works carried out at LGOK and OEMK. Whilst HBI/DRI shipments decreased by 5.2% q-o-q, it enabled to increase external pellet shipments by 2.9% q-o-q.

Hot metal output grew by 0.7% q-o-q, whilst crude steel production decreased by 2.5% q-o-q.

The Company increased shipments of its iron ore by 7.7% q-o-q to 3.1 mn tonnes, primarily due to released volumes as a result of the maintenance works at the Company’s pellet plants.

The Company’s shipments to Eastern Europe grew by 14.7% q-o-q to 1.4 mn tonnes, with a surge in shipments to Russia, Asia (excluding China) and MENA region, which accounted for 52.0%, 6.3% and 2.1%, respectively, of the Company’s consolidated iron ore products shipments in Q2 2012.

Due to the continued positive dynamics of iron ore products shipments to the above mentioned markets, the Company further reduced supplies to China to 1.0 mn tonnes (-23.8% q-o-q).

As a result, China represented 13.4% of the Company’s consolidated shipments in Q2 2012