MMC to resume ore purchases from Sokolovsko-Sarbaiskii GOK

/IRBIS, Feb.7, 00/ - PRIME-TASS informs, with the reference to the public relations department of the company, that OJSC "Magnitogorskii metallurgicheski kombinat" /MMC, Magnitogorsk, Chelyabinsk region/ and Sokolovsko-Sarbaiskii GOK /Kazakhstan/ signed an agreement on shipments of iron ore to the combine for the years 2000-2003. Sokolovsko-Sarbaiskii GOK was the main supplier of MMC until mid 90s. It can produce more than 15 mln tons of ore a year. The company stopped to ship the ore to MMC when foreign managers took over the ownership of the company. 50.5% voting shares were owned by Icelandic Ivedon until the government revoked its license last year. This made the shipments of ore to MMC possible. The combine had to purchase ore from Lebedinskii and Mikhailovskii GOKs till recently. Coal of Sokolovsko-Sarbaiskii GOK was more preferred and it was only 300 km away from the combine. The ore price has also been dropped by half at Sokolovsko-Sarbaiskii GOK. MMC will buy at least 8 mln tons of 13 mln tons required from Sokolovsko- Sarbaiskii GOK in the year 2000, which is 500-750 th. tons monthly at fixed prices. 20% of the metal output cost of MMC is the cost of the ore. Last year production of cast iron at MMC increased from 840 th. to 7,731 th. relative to 1998, that of steel - by 1,068 th. tons up to 8,792 th. tons, commodity rolled steel - by 921 th. tons up to 7,684 th. tons.