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| Russian MMK's 1H08 Results (On GAAP - USA) |
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Russian Magnitogorsk Iron and Steel Works ("MMK") has recently announced its consolidated operational results for the first half year of 2008, elaborated based on the GAAP (USA), demonstrating achievement of buoyant Net Revenue (US$5,653 million), Operating income (US$1,367 million) and Net income (US$1,031 million). Operating income margin was 24.2%. [Iron ore self-supply ratio reaches 80%] Compared with its rivals, MMK is short of captive ferrous raw material supply sources, which is motivating the Company to seek its proper resources. In December 2006, the Company acquired at state auction an exploration and development license for the Prioskolskoe iron ore deposit located in the Kurskaya region, Russian Federation, expiring in 2026. The carrying value of license was US$23 million as of June 30, 2008 and December 31, 2007. The Prioskolskoe iron ore deposit will be developed and come into mining in 2012 by the project implementation branch of the Company established with cooperation from a Czech company. In 2016 the processing plant will reach its design capacity of 25 million tonnes per annum (Mt/a) of iron ore, which, coupled with output from the local Magnitogorsk mine, will meet 80% of MMK's requirement for this kind of raw materials. MMK in addition has interests in Kazankovskaya Mine which holds a license to explore and mine coal deposits located in the Kemerovo region, Russia, and Belon, a coal-producer, located in Russia, as well. |
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| last modified : Mon 01 Sep, 2008 [11:26] |
