Raspadskaya Coal Company (Raspadskaya), the second largest coking coal producer in Russia and a subsidiary of domestic steelmaker Evraz Group, has announced its preliminary operating results for Q3 and for the first nine months of 2009.
Accordingly, Raspadskaya's raw coal output in Q3 this year increased by 32 percent quarter on quarter to 3.02 million mt, while its total January-September raw coal production amounted to 7.19 million mt - down 10 percent year on year. The company's total sales volume of concentrate in the first nine months of this year amounted to 5.24 million mt, while in Q3 its sales increased by 34 percent quarter on quarter to 2.255 million mt, indicating the company's stabilization in terms of production and sales volumes.
In Q3 2009, Raspadskaya increased its export sales share and raised its weighted average price of coal concentrate by 12 percent quarter on quarter to $51.5/mt FCA Mezhdurechensk, Kemerovo region, on the back of short-term export contracts with which sales to Asian consumers rose to 37 percent of the company's total export sales.
"For almost one year the company has been working in conditions of recession of industrial production and uncertain consumer demand. During the most challenging period our export sales enabled the company to support its production levels and find cost balance," Raspadskaya's CEO Gennady Kozovoy stated.
During the first nine months of 2009 Raspadskaya fulfilled all the obligations to its clients and has already signed contracts for the full period of Q4 2009 at a domestic sales price of coal concentrate of Ruble 2,700/mt (approx. $92/mt at the current exchange rate) on FCA Mezhdurechensk basis.
"In Q4 2009, Raspadskaya's sales to the domestic market, which is key for the company, will amount to at least 65 percent of total sales volumes. At the same time, the company will continue to diversify its regional sales markets and client base in frames of the budget process for 2010," Mr. Kozovoy said.