IMH operating results for 1H 2015
IMH, the world's largest exporter of merchant pig iron and the leading producer of merchant coke in Russia, announces its operating results for 1H 2015.
|Production, '000 tonnes||1H 2015||1H 2014||
1H 2015 г./
1H 2014 г., %
|Coal production||1 067||903||18%|
|Coal concentrate||1 130||1 187||-5%|
|Coke with 6% moisture content||1 390||1 224||14%|
|Iron ore production||2 405||2 348||2%|
|Iron ore concentrate||1 094||1 048||4%|
|Pig iron, total||1 058||1 094||-3%|
|Pig iron, basic||688||811||(15)|
|Pig iron, premium grades||370||283||+31|
During 1H 2015 Butovskaya mine ramped up its coal output by 34% to compare to the same period of 2014. Uchastok Koksoviy open-pit mine also slightly increased coal extraction volumes.
Total volume of coal extraction in 1H 2015 was 18% higher to compare to 1H 2014. Production of coal concentrate was slightly less due to higher ash content of third party coal bought for processing at the Beresovskaya washing pant facilities.
Export supplies of coke grew steadily starting from the second half of 2014. Large volumes of IMH’s coke is currently consumed by the European customers. In 1H 2015 coke production increased due to growing demand from international markets which was a result of improved quality of the product. For example, OAO Koks produces coke grades with low content of ash, sulfur, phosphorus, high CSR including 62% and 64% CSR grades.
OAO Kombinat KMAruda increased production volumes of iron ore concentrate due to higher iron ore extraction and improved quality of extracted ore.
The volume of premium grades of pig iron has significantly increased which caused a slight decrease in total pig iron output.
Sergey Cherkaev, Vice President and Chief Financial Officer of the management company Industrial Metallurgical Holding, commented on the 1H 2015 results:
“Premium grades of pig iron are more competitive to compare with basic grades. That is why we are more focused on premium grades production. We particularly pay a lot of attention to production of the so-called nodular grades with low content of sulphur and phosphorus. This quality is partly achieved by using high quality coke with low content of sulphur and phosphorus, which is produced from coal of our Butovskaya and Uchastok Koksoviy mines. We also use high quality iron ore concentrate of our OAO Kombinat KMAruda, which also contain low sulphur and phosphorus. In addition, in October 2015 we are going to commission a new desulfurization unit which should double our capacities of low sulphur grades production and should cut our pig iron production costs.
Our pig iron and coke production capacities are fully utilised. We enjoy stable demand for our products. Considering this, we are quite optimistic about the prospects for the financial results of FY 2015. In general we see significant improvements in terms of half-year financial results.”
About the Company:
KOKS Group (former IMH) is a vertically integrated business focusing on the extraction and processing of coking coal and iron ore to feed its pig iron and coke production. KOKS Group is the world’s largest exporter of merchant pig iron, and a leading producer of merchant coke in Russia. KOKS Group’s four operational divisions are coal, coke, iron ore & pig iron and powder metallurgy. KOKS Group’s key production facilities are located in the Kemerovo, Tula and Belgorod Regions of the Russian Federation.
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