The Russian coal mining company Belon Group (Belon) has issued its operational results for the first half of 2009.
During the period in question, Belon increased its output of coking and power-generating coal by 32 percent to 3.122 million mt compared to the same period last year. Belon's output of coking coal in H1 2009 amounted to 1.810 million mt - up 30 percent year on year, mainly due to the commissioning of its new mine Kostromovskaya and the increase of output at its Chertinskaya-Koksovaya mine.
In January-June 2009, Belon's enrichment plants processed 3.946 million mt of coal - up 15,000 mt compared to H1 2008, while its deliveries of coking coal concentrate decreased by 14 percent to 1.38 million mt compared with the same period last year, mainly due to the decreased demand from steelmakers in Q1 2009, especially in January-February. Accordingly, during the period in question, Belon's deliveries to Magnitogorsk Iron and Steel Works (MMK) increased considerably, while its deliveries to Novolipetsk Steel (NLMK) remained constant. In addition, in H1 of this year the company started regular exports to the Southeast Asian markets.
In the first half of 2009, Belon reduced its coking coal price for the Russian domestic market by 47 percent compared with the same period last year. The company's H1 revenue under Russian Accounting Standards (RAS) amounted to Ruble 7.285 billion ($220 million) - down 45.7 percent year on year. Belon's total investments during the period in question amounted to Ruble 745 million ($22.5 million), excluding VAT.
In January-June this year the number of employees at Belon declined by 347 to 7,612.