Citic Pacific First-Half Profit Falls 19% on Wider Iron Ore Loss

Citic Pacific Ltd. (267), building the world’s largest magnetite mine, said first-half profit dropped 19 percent as losses from its iron ore unit widened.

Net income was HK$4.46 billion ($575 million) in the six months ended June 30, compared with HK$5.48 billion a year earlier, the Hong Kong-based company said today in a statement. Sales decreased 14 percent to HK$41.3 billion.

“The sharp decline in profit from continuing business activities was mainly due to our iron ore mine in Australia,” Chairman Chang Zhenming said in the statement. “Our focus for the next six months will be to ensure the stable running of production line one, ramping it up to full capacity as soon as possible, as well as getting the second production line ready for load commissioning.”

The company has recommenced load commissioning of line one in late July at its Sino Iron project in Australia, Citic Pacific said. Iron ore concentrate produced to date has been stockpiled near the port and the first shipment will be arranged once it has permission, it 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: Jason Rogers at jrogers73@bloomberg.net

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