Raspadskaya ups coal output 3% to 4.8 mln tonnes in 9M
MOSCOW. Oct 11 (Interfax) - Russian coal producer OJSC Raspadskaya boosted raw coal output by 3% year-on-year to 4.812 million tonnes in January-September 2012, the company said in a report on its preliminary operating results for Q3 2012 and 9M 2011.
In Q3, meanwhile, Raspadskaya slashed production 25% quarter-on-quarter to 1.378 million tonnes.
"Extraction at Raspadskaya mine increased by 63% compared to the nine months of 2011 and totaled 1.7 million tonnes. In Q3 2012, Raspadskaya mine increased extraction by 27% compared to Q2 2012. The current production level at Raspadskaya mine and the capacities of the company's mines are significantly higher than consumer demand," the statement said.
In Q3 production volumes decreased due to lower demand for coking coal on the domestic market and a declining price trend on export markets. Raspadskaya had to constrain extraction at the Raspadsky open pit and MUK-96 mine at 30% of production capacity.
Concentrate sales grew 8% year-on-year to 2.986 million tonnes in January-September, whereas they were down 8% quarter-on-quarter to 981,000 tonnes in Q3. Declining prices throughout the first nine months of the year on all of the regional markets precipitated a 10% and 13% quarter-on-quarter drop in price of sales in ruble and dollar terms, respectively, in Q3.
"The company is negotiating further cooperation on several regional markets, for contracting additional volumes for Q4 2012 and for 2013 under long-term contracts," the report said.
On October 8, Raspadskaya and Hyundai Steel Company signed a memorandum of long-term cooperation starting in 2013 to supply coal products with volumes gradually increasing up to 300,000 tonnes per year.
Raspadskaya's main production figures, '000 tonnes:
| Q3 2012 | Q2 2012 | % | 9M 2012 | 9M 2011 | % | |
| Total raw coal production | 1 378 | 1 843 | (25) | 4 812 | 4 669 | 3 |
| Concentrate sales, including: | ||||||
| - Russia | 779 | 866 | (10) | 2 509 | 2 776 | (9) |
| - Export | 202 | 203 | (1) | 477 | 0 | - |
| Raw coal sales | 190 | 189 | 0 | 516 | 802 | (36) |
| Weighted average price of concentrate (FCA Mezhdurechensk), rubles/t | 3 087 | 3 424 | (10) | 3 457 | 4 677 | (26) |
| Exchange rate, ruble/$1 | 32,01 | 31,01 | 3 | 31,10 | 28,77 | 8 |
The concentrate output ratio increased by 4% year-on-year and reached 76.2% in January-September 2012.
Besides its flagship mine, the Raspadskaya group includes the mine MUK-96, Raspadsky open pit, a mine now under construction called Koksovaya, an enrichment plant and infrastructure enterprises. In May 2010, deadly blasts at the Raspadskaya mine killed 91 people and halted coking coal production until December that year. Raspadskaya has resumed production at some of the affected areas, but some mine workings in the accident zone are still smoldering.
Raspadskaya's primary shareholder is Cyprus-based Corber Enterprises (81.95%), which Evraz and the coal company's management headed by Gennady Kozovoy and Alexander Vagin own on an equal footing. At the beginning of October, Evraz announced its acquisition of a 50% stake in Corber, as a result of which it will secure the right to indirect ownership over 82% of Raspadskaya's stock. Evraz intends to issue new shares worth 9.9% of its capital to pay for the stake in Raspadskaya.
