ENR Cutting output in 2008, Kazakhmys waiting for crisis

/REUTERS, Astana, October 28, 08/ - The largest Kazakhstan copper producer Kazakhmys corporation and mining holding Eurasian Natural Resources Corp Plc may reduce production in 2008 due to global economy crisis, Vladimir Shkolnik, the Minister of Industry and Trade said on the government meeting. However, the head of Kazakhstan subdivision of Kazakhmys Eduard Oghay said that the company wouldn't reduce production volumes in 2008. "We don't plan production decreasing this year and the way the market will behave, that way we will plan. WE hope to stay at these volumes" - he said. Kazakhmys is in top 10 worldwide copper producers. It is producing refined copper, non-ferrous and precious metals and coal mining. Metallurgic group ENRC is the major ferrochrome producer worldwide. The company also produces alumina and aluminum. "The sharp price fall on world non-ferrous metal markets, is forcing Kazakhmys to take measures to halt some production subdivisions and reprofiling activity, at that the corporation won't reduce the staff" - the Minister said on Tuesday at the government session. Besides, according to him, Kazakhmys may reduce production. "According to the Ministry, there is possibility on deterioration of situation till the end of the year. Output at all ENRC subsidiaries will be reduced" he said. The government holds minority stake in both companies. Kazakhmys owns 25.02 % shares of ENRC holding, which unites several metallurgic companies, including Kazchrome, Aluminum Kazakhstan, Kazakhstan aluminum plant, Zhairemskiy MC, SSMPE, Eurasian energy corporation. ENRC announced in August on waiting good results in the second half of 2008. However the company doesn't exclude that revenues will be under the pressure next year also, especially in major subdivisions. The net income of Kazakhmys, which is also engaged in gold, silver and zinc production, by results of first half of 2008 reduced to $610.5 m. from $801.5 m. In first half of 2007, EBITDA indicator, except special articles, reduced by 21 % to $1.05 bn. from $1.32 bn. in the first half of last year. Shareholders of the company represent Kazakhstan in "gold hundred" of billionaires, according to American magazine Forbes: one of shareholders of Kazakhmys Vladimir Kim and shareholders of ENRC Alexander Mashkevich, Patokh Shodiev and Alidjan Ibragimov. [2008-10-28]