IRC Posts First-Half Loss on Lower Iron Ore Prices, Write-off

IRC Ltd. (1029), the iron ore miner in Far East Russia, posted a loss for the first half as prices fell and it took a one-time charge on a titanium project.

The unit of gold miner Petropavlovsk Plc (POG) sold iron ore at an average price of $127 a metric ton in the quarter ended June 30, 15 percent lower than a year earlier, IRC said today in a statement on its unaudited financial results that didn’t give the extent of the loss.

China, which accounted for 90 percent of IRC’s sales last year, cut iron ore imports by 8.7 percent in June from the previous month as a slowing economy reduced demand for the commodity used by steelmakers. Iron ore prices may average $135 a ton in the third quarter and $140 in the final three months of the year, according to Citigroup Inc.

The write down in titanium is “due to uncertainty regarding the project’s future,” IRC said.

To contact the reporter on this story: Michelle Yun in Hong Kong at myun11@bloomberg.net

To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net

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