Results of activity of SSOMPIU (Kazakhstan) for 2005 and development prospects for 2006 - press release

/KASE, December 7, 05/ - Sokolovsk-Sarbay ore mining and processing industrial unit JSC (SSOMPIU JSC, Rudnyi, Kostanai obl.), whose shares are included in Kazakhstan stock exchange's (KASE) official "A" listing category, spread press release, which informs the following: Beginning of quotation Till the end of 2005 production of crude ore of Sokolovsk-Sarbay ore mining and processing industrial unit JSC will be 30.7 m. tons. In 2005 SSOMPIU will load 11.9 m. tons of iron ore production. Export will be 10 m. tons or 84% from total volume of sale. Annually delivery of market production to China is growing. Within 2004 1.0 m. tons iron ore production was loaded, this year - 2.4 m. tons. Annually, starting from 1998, growth of salary is observed. The current year it was KZT39.5 th., this exceeds level of last year by 5.1%. Within period from 2001 to 2005 volume of investments was $255 m. This year development of investment program is expected in the volume $87 m. Four main directions of investment program exist in the enterprise: development of source of raw materials, factory and energy complexes, innovation projects. This year $51 m. was spent for development of source of raw materials. For example, for increase of production capacity of Kacharsk open pit by 3 m. tons of ore, amount of investments in this subdivision was $54 m. Transport scheme developed rapidly. 12 BelAZ with carrying capacity 120 tons, 3 rod aggregates, 3 excavators, 2 boring rigs, road technique were aquired. For $3 m. of investments in Kurzhunkulski open pit, for development and increase of ore production there by 1.2 m. tons, 6 BelAZ with carrying capacity 55 tons, 130 dump cars, bulldozers were aquired, boiler-room and garage for technological auto dump-trucks were reconstructed. Amount of investments in factory complex this year is $22 m. Reconstruction of split section and technological section is continued with increase of its productivity. Thin screening is implemented in decomposition scheme. Capacitance of bays tails-storage is increased and 7 technological threads of tail economy are constructed. For energy complex $6 m. is spent in 2005. Overhaul and reconstruction of boiler-turbine equipment was made for improvement of Rudnyi heat supply and energy supply of unit's objects, construction of hydro ash dump is continued. In 2006 it is planned to produce 40.2 m. of crude oil, whereas production of concentrate of natural moisture will be 16.7 m. tons (+ 29.3% to the level of 2005), production of pellets will be increased by 17.6% and will be 8.7 m. tons. The next year consumers will get 16.3 m. tons of ready production. 91% from total volume of sale will be export or 14.8 m. tons. For 2006 increase of load to Chinese consumers is planned to 5.2 m. tons. Growth of payments for 2006 is stipulated up to KZT25.7 bn. For 2006 investment program is planned in volume $90 m. including development of source of raw materials - $50.7 m.; factory complex - $26.1 m.; energy complex - $8.2 m.; other projects - $2.6 m. SSOMPIU JSC elaborates prospective innovation projects. Main of them are considered: development of ore base, factory complex, construction of plants for metallized products. Laboratory and semi-industrial tests of iron ore concentrate was held, which gave good result. Metallized product with iron content over 90% and metallization degree - 95% was obtained. Increase of HS capacity more by 63 MWt, growth of electric energy output by 472.5 m. K.W.H. is stipulated, whereas stake of consumption of own electric energy will be 92%. Total electric capacity will be 267 MWt. Today it is 204 MWt. For expansion of HS capacity $38 m. is planned to be spend. For maintenance of social sphere annually above KZT100 m. is spend. This year in treatment-sanitary center "Rassvet" overhaul of balneary was made for the amount above KZT74 m. the unit's management made present to Kacharsk school - two computer classes were equipped with 22 modern computers for KZT10 m. For the amount above KZT8 m. canteen were repaid in SSOMPIU subdivisions. Starting form 2004, reconstruction of youth sport complex "Gornyak" is made. For today above KZT60 m. were spent: swimming pool was reconstructed, roof was repaired and shower baths were repaired, training simulator hall is equipped with modern training simulators. For 2006 more KZT185 m. is planned to assimilate in YSC "Gornyak". End of quotation [2005-12-07]