The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced that in the third quarter of the current year under International Financial Reporting Standards (IFRS) its coal mining subsidiary Belon registered a $6 million net loss compared to a $22 million profit in the second quarter, while its EBITDA equaled $38 million, down from $70 million in the previous quarter.
Accordingly, in Q3 Belon's concentrate production decreased by 32 percent quarter on quarter to about 1.1 million mt, because of intricate geological conditions and technological arrangements to meet safety requirements with simultaneous change of walls.
In addition, in Q3 2010, MMK's consumption of coal concentrate from Belon declined by 14 percent quarter on quarter from 627,000 mt to 543,000 mt. Recovery of coal production and supplies volumes from Belon to MMK is expected in Q4 2010.
Jan-Sept 2010 |
Jan-Sept 2009 |
Change |
Q3 2010 |
Q2 2010 |
Change |
|
Concentrate production (mt): |
4,345,000 |
3,684,000 |
17.9% |
1,094,000 |
1,608,000 |
-32.0% |
coking coal concentrate (mt) |
2,118,000 |
1,991,000 |
6.4% |
525,000 |
747,000 |
-29.7% |
steam coal concentrate (mt) |
2,127,000 |
1,693,000 |
25.6% |
569,000 |
853,000 |
-33.3% |
Sales of coal segment ($, million) |
396 |
- |
- |
106 |
140 |
-24.3% |
EBITDA of coal segment ($, million) |
165 |
- |
- |
38 |
70 |
-45.7% |
EBITDA margin |
42% |
- |
- |
36% |
50% |
- |
Profit for the period of coal segment ($, million) |
31 |
- |
- |
-6 |
22 |
- |