Kazakhstan-based mining group Eurasian Natural Resources Corporation Plc. (ENRC) has announced that its ferroalloys and iron ore division in Kazakhstan recovered to operate at effectively their full available capacity in Q4 2009, reflecting improved market conditions.
Accordingly, in Q4 2009, ENRC's total ferroalloy production went up by 54.5 percent year on year and 8.5 percent quarter on quarter to 448,000 mt, with growth of 56.7 percent year on year for ferrochrome (351,000 mt) and of 84.6 percent year on year for silicomanganese (48,000 mt). Ferroalloy capacity utilization in Q4 2009 for ENRC's subsidiary Kazchrome was 96 percent (in Q3 2009 was 92 percent), for Serov was 76 percent (in Q3 2009 was 69 percent) and for Tuoli was 74 percent (in Q3 2009 was 50 percent).
Meanwhile, ENRC's Q4 iron ore extraction increased by 74.1 percent year on year to 10.64 million mt, and its primary concentrate production went up by 79.3 percent year on year to 4.34 million mt, reflecting a recovery in demand in both the Russian and Chinese markets. On the other hand, the ore extraction was slightly lower than in Q3 2009 by 3.1 percent, due to the adverse winter conditions, which also affected the capacity utilization for primary concentrate production, which in Q4 2009 was at 97 percent - down from 100 percent in Q3.
In Q4 2009, compared to Q4 2008, ENRC also saw an increased proportion of pellet in the saleable mix. The company's pellet production doubled from Q4 2008 and saleable concentrate production rose 57.5 percent year on year, to 2.295 million mt and 1.93 million mt respectively. Against Q3 2009, pellet production increased by 23.4 percent while saleable concentrate production decreased by 24.1 percent, as production was switched in response to improved demand for higher-margin pellet.