SSOMPE (Kazakhstan) will increase iron ore supply to Magnitogorsk

/REUTERS, Almaty, Tatyana Seroshtanova, October 20, 05/ - Iron ore producer Sokolovsko-Sarbayskoye OMPE (Kazakhstan) plans to increase supply to Russian Magnitogorsk metallurgical combine, and also to Chinese consumers, the company's press release says. In 2004 SSOMPE increased production of ore by 6% to 14.6 m. tons in comparison with the last year. "Unambiguously: 60% of production will go to MMK" - press release of SSOMPE president Mukhamedzhan Turdakhunov quotes. "MMK and SSOMPE cannot work separately. We have big prospects, and in nearest two-three months concrete decisions will be taken", - he said, not giving details. In spring between SSOMPE and MMK was dispute about price, as a result sales of Kazakhstan raw material to Russian company in May were stopped. On this background SSOMPE decreased ore production in the first half of 2005 by 5.0% in comparison with similar period of last year to 6.69 m. tons. However in August deliveries to Magnitogorsk from Kazakhstan have been renewed. "At present time production delivery volumes to MMK grew to 500,000 tons from 200,000 tons", - SSOMPE press service employee informed. SSOMPE, which is included in Eurasian industrial association, plans also to increase delivery volumes to CPR. "If to see delivery dynamics to China, only in a year it grew by 300%... We intend further increase volumes, developing this direction", - Kazakhstan company's press release quotes. The release does not give export volumes to China in absolute expression. BRIQUETTEA AND PELLETS PLANT According to SSOMPE head, the company elaborates new investment project - construction of plant for production of sputtered goods, estimating it in more than $350 m. SSOMPE seeks new investors, estimating capacity of new plant in 1.5-2.0 m. tons of sputtered briquettes and pellets a year. "Actually we have started work. Only to pass tests for convenience of our raw material for production technologies of final product, the enterprise spent $700.000", - Turdakhunov's document quotes. The document does not give other details. [2005-10-20]