SSPU JSC intends to increase iron ore production supply to China in 2006 more than twice - head of the enterprise

/INTERFAX-KAZAKHSTAN, Rudnyi, October 19, 05/ - Sokolovsko- Sarbayskoye production unit (SSPU, in Kostanay oblast of Kazakhstan, on the north) intends in 2006 to supply China with 5-6 m. tons of iron ore production in comparison with 2.5 m. tons, planned for 2005. At that, as president of SSPU Mukhamedzhan Turdakhunov noted at press conference on Wednesday in Rudnyi, China's market is "very perspective" for the company. Along with this M.Turdakhunov stressed importance of partner relations' development with traditional consumer of SSPU production - Russian Magnitogorsk metallurgical combine (MMK). "The enterprise has and develops very kind and mutually beneficial relations with Magnitogorsk metallurgical combine", - head of SSPU said. According to him, "there is prospect" for development of further collaboration of two enterprises. Particularly, as M.Turdakhunov informed, the other day chairman of the board of directors of MMK OJSC Viktor Rashnikov visited SSPU. However he did not specify content of passed negotiations. Meanwhile, M.Turdakhunov stressed, contract of SSPU with MMK will be "main". "60% of the enterprise's production will go to MMK", - he said. As it was informed, in May of the current year SSPU stopped delivery of its production to MMK. Essence of conflict was that the enterprises did not agree on question of prices for production. At the end of July MMK and SSPU at last could agree about partial renewal of supply, and since August shipment to Russian combine renewed. SSPU is the biggest iron ore raw stuff producer in Kazakhstan, particularly, of concentrate and pellets. In 2004 SSPU produced 35.8 m. tons of crude iron ore and produced 14.8 m. tons of marketable ore. In 2005 unit plans to increase production of crude ore to 40 m. tons, production of marketable ore - to 16 m. tons. SSPU is included in Eurasian industrial association with Aluminum of Kazakhstan JSC, Eurasian energy corporation, enterprises of transnational company Kazchrome and coal mine Shubarkol Komir JSC. [2005-10-19]