ENRC signed 10-year contract with Magnitogorsk metallurgic enterprise on supply of iron-ore raw stuffs from SSMPC

/IRBIS, Mukasheva Dinara, March 19, 07/ - Eurasian Natural Resources Corporation (Astana, in the title - ENRC) has spread today the press release to the following effect. Quotation start MMK and ENRC signed 10-year contract on supply of ore-iron raw stuffs, produced by SSMC. Magnitogorsk Matallurgic Enterprise (MMK), the biggest metallurgic enterprise in Russia, and ENRC Marketing & Sales, the exclusive deliverer of stuffs of the company Eurasian Natural Resources Corporation (ENRC), informed of signing 10-year contract on supply of ore-iron stuffs. ENRC Marketing & Sales will maintain supply of ore-iron stuffs from Sokolovsko-Sarybayskoe mining and smelting production company (SSMPC), entering in the ENRC group. Close partnership relations connect MMK and SSMPC, starting from time of creation of SSMPC in the Soviet Union in the middle of 1950s. Pursuant to terms of the Contract, ENRC Marketing within last 10 years keeps maintaining supply of the iron-ore concentrate, fluxed pellets and other ore-iron raw stuffs to MMK in agreed by parties. The main approach to form prices within frameworks of the contract is to go with world tendencies, and a chance to index them each contract year. To coMMKnt on the signed contract, the Chairman of the Council of directors of MMK Viktor Rashnikov noted: "We are satisfied with conditions of signing the contract with ENRC, which will make our relations stronger for coming years. Our cooperation turns to different stage with this undertaking. It will allow to create stable aimed for long perspectives program on maintaining supply to MMK with main raw stuffs, which will make for building up our competitiveness". Doctor Johannes Sittard, the general director of ENRC, added: "Signing of the contract reflects longstanding partnership relations between our companies. Certainty and trustworthiness of MMK, which is treated as a reliable business partner starting from the time of creation of SSMPC, allows us to maintain liabilities and provide a big amount of supply. This contract forms a basis for SSMPC to modernize and enlarge the production range". Contacts for media ENRC: Kazakhstan, Russia and CIS: Leonid Solovyev Tel.: +7 (495) 795 06 23 Mob.: +7 (495) 920 60 80 E-mail: enrc@fd.com Great Britain and other countries: John Aaron Tel.: +44 (0)20 7269 7178 Mob.:+44 (0)7810 752 200 E-mail: enrc@fd.com MMK: Russia, CIS, Great Britain and other countries: Yelena Azovtseva Tel.: +7 (3519) 24 90 82 Mob.: +7 902 891 34 02 Fax: +7 (3519) 24 80 24 E-mail: azovtseva@mmk.ru Additional information about MMK: Magnitogorsk metallurgic enterprise OJSC enters into top twenty world copper producers' group (the source: IISI) and occupies the leading positions among enterprises of ferrous metallurgy of Russia (the source: Chermet). The stake of MMK is Russian manufacture of metal-roll is 19% (the source: Chermet). The enterprise embodies a big metallurgic complex with complete production cycle, starting from preparation of ore-iron raw stuffs and finishing with processing of ferrous metals. MMK provides the biggest range of metal stuffs between Russian and CIS enterprises, with a dominant part of deep operating with value added cost. In 2006 the enterprise produced 12.4 m. tones of copper and 11.3 m. tones of trade metal stuffs. Reference to the subject: MMK - www.mmk.ru Addition information about ENRC: Starting from 1991, when the Republic of Kazakhstan gained independence, ENRC was developing as the absolutely integrated group of enterprises in the field of minerals extraction and concentration with its own energy and transporting mills. In all for 15 years the group has become the company of the world standard having annual sales, exceeding $3 bn and the personnel of over 60 th. individuals. The main competitive advantages of ENRC: - Big explored chrome, manganese, iron ore, bauxites and coal resources - The exclusive low-chargeable production model - It owns energy distribution services and logistics center - It has a good geographical position, which allows to come into the region at the time when markets of Russia, China and India are rapidly developing. The production cycle of the Group possesses 8 directions, including exploration, extraction, processing, energy generation, logistics and marketing. More detailed information about ENRC is available at www.enrc.com Additional information about SSMPC: SSMPC JSC is located in Rudniy in Kostanay region of the Republic of Kazakhstan and turns out the biggest enterprise in CIS on extraction and processing of iron ore with exploitable resources of iron-ore fields at 1.5 bn tones and explored resources at 4.2 bn. tones (the source: Report by SRK). SSMPC merges Sarbayskiy, Kacharskiy, Kurzhunkulskiy iron-ore deposits and the mine Sokolovskaya, which can provide extraction for coming 40 years. Quotation end [2007-03-19]