ENRC Output Rises as Iron Ore Has Best Quarter in Three YearsFirat Kayakiran
Eurasian Natural Resources Corp., the metals producer that’s the subject of a takeover offer from its founders and the Kazakh government, said ferrochrome and iron-ore production advanced as the units ran at full capacity.
Production of saleable ferroalloys, used in steelmaking, rose to 386,000 metric tons in the second quarter from 377,000 tons a year earlier, ENRC said today in a statement. Iron-ore extraction rose 9.9 percent to 10.9 million tons, and saleable iron ore output advanced 21 percent to 4.3 million tons.
“Our operations in Kazakhstan and Africa have had an excellent quarter,” Chief Executive Officer Felix Vulis said in the statement. “Production volumes are up year-on-year across all of our key commodities, with the iron-ore division having had its best quarter in three years.”
ENRC’s founders Alexander Machkevitch, Patokh Chodiev and Alijan Ibragimov in June offered $2.65 in cash and 0.23 of Kazakhmys Plc stock for each share to take the company private. Shareholders of Kazakhmys, which owns 26 percent in ENRC, last week voted in favor of the transaction.
ENRC, which produces ferroalloys, iron ore, aluminum and power in Kazakhstan, also owns copper and cobalt mines in Africa. Production of saleable copper more than doubled to 22,685 tons in the quarter from 8,505 tons a year earlier, according to the statement. Bauxite extraction advanced 2.8 percent to 1.35 million tons and alumina rose 8.5 percent to 408,000 tons, ENRC said. Aluminum output was 63,000 tons.
ENRC traces its roots to the founders’ participation in the 1990s privatizations of Kazakh state assets, which were gradually combined into a single group of companies and listed in London in 2007.
The company is under investigation by the U.K.’s Serious Fraud Office over allegations of fraud, bribery and corruption over its activities in Kazakhstan and Africa.