ENRC to low iron ore and ferroalloy production because of falling demand

/INTERFAX, London, October 29, 08/ - Kazakhstan Eurasian Natural Resources Corp., a member of the three largest ferrochrome manufacturers in the world, will lower volumes of iron ore and the production of ferroalloys on weakening demand from steel producers. As company representative Ed Orlebar said to Bloomberg agency in the fourth quarter ENRC will produce less commodity products "due to weakening demand caused by the global financial situation and its impact on demand on the side of clients, producing steel and stainless steel." This year, according to the representative of the company, iron ore production would be "somewhat lower" than the figure recorded in 2007. At that, the production of ferroalloys at ENRC except Serovskiy plant, which was bought in April this year, will generally, be at the level of last year. Steel producers, including ArcelorMittal and Severstal OJSC, are planning to revise the planned production and investment programs. According to analysts, Credit Suisse Group AG steel companies may postpone development projects for the total of $ 50 billion. ENRC is a fully integrated group in the field of mining and beneficiation of minerals with their own energy and transport enterprises. ENRC consolidated assets of the following companies: Kazchrome, Aluminum of Kazakhstan, Kazakhs electrolysis plant, Zhayremskiy mining and concentrating plant, Sokolovsko-Sarbayskoe mining and enrichment production association, Eurasian Energy Corporation as well as ENRC Logistics и ENRC Marketing & Sales. Since April, the company also owns a majority holding in Serovsky Ferroalloy Plant OJSC and affiliated companies. [2008-10-30]