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Chelyabinsk Zinc Plant reports production increase

Chelyabinsk Zinc Plant, Russia's largest producer of zinc and zinc alloys, announced its production results for the twelve months period of 2007. January through December 2007, Chelyabinsk Zinc Plant (CZP) produced 165,007 tonnes of SHG zinc and zinc based alloys, an increase of 11.2% as compared to the same period of 2006 (148,384 tonnes). 49% of zinc sales (by tonnage) were made on the domestic market. The largest Russian steel producers: MMK, NLMK and Severstal remain to be CZP's principal customers.

Commenting on the 2007 production results, Sergei Moiseyev, Chairman of the Board, CZP, noticed: 'Production goals were successfully achieved in 2007 and we've made several steps to secure full independence in raw materials supplies by 2010. In particular, the Waelz kiln #5 was put into operation; the plant has also received a license for the development of Amur zinc field. Our major strategic objective still remains to reach the output of 200, 000 tonnes of zinc per year by 2010.The company estimates the total production volume in 2008 to reach 170 thousand tonnes while the production of zinc in concentrate by Akzhal mine will reach 35, 000 tonnes.'



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