SSOMPU during 7 months reduced export of pellets by 16%, iron-ore concentrate - by 6.5%

/INTERFAX, Moscow, August 26, 05/ - Sokolovskoe -Sarbayskoe ore mining and processing production unit JSC (SSOMPU JSC, in Kostanai oblast of Kazakhstan, on the north), main exporter of marketable iron ore in Kazakhstan, for 7 months 20005 reduced iron-ore pellets export in comparison with January-July 2004 by 16.2%, concentrate - by 6.5%. As Interfax was informed in Rudprom concern (unites majority of iron-ore raw material producers in RF), at that export of pellets in China increased by 76% - to 852 th. tons, and export to Russia decreased by 27.8%, to 2.78 m. tons. Export of concentrate to Russia for 7 months dropped by 16.5%, to 1,67 m. tons. In July of this year in comparison with July 2004 slump of export became essential. So, total export of SSOMPU pellets decreased by 58%, to 267 th. tones, concentrate - by 50%, to 175 th. tons. Experts note, that decrease of SSOMPU export directly connected with conflict between ore mining and processing enterprise and Russian Magnitogorsk metcombinat (MMK), main consumer of its production. SSOMPU and MMK did not agree on question of prices for production, as a result since May of this year SSOMPU stopped delivery of marketable ore to metcombinat. As a result MMK found alternative suppliers of raw material, including Ukraine Poltavski OMPE, and SSOMPU tried to resend production sale, particularly, to increase sale of ore in China. At the end of July parties at last agreed about partial renewal of delivery. As per plan in August SSOMPU delivery to MMK will be 200 th. tons. However, in the opinion of experts, this will hardly essentially improve export indexes of SSOMPU, because, for example, in 2004 MMK purchased from SSOMPU averagely nearly 750 th. tons of marketable ore. In 2004 SSOMPU produced 35.8 m. tons of iron ore and produced 14.8 m. tons of marketable ore. In 2005 unit planned to increase production of crude ore to 40 m. tons, production of marketable ore - to16 m. tons. SSOMPU JSC is included in Eurasian industrial association together with Alluminium of Kazkahstan JSC, Eurasian energy corporation, enterprises of transnational company Kazchrome and coal pit Shubarkol Komir JSC. [2005-08-26]