July 25, 2008

Dalpolymetall to boost production of zinc and lead

FIS reported that in 2007, Mining and Metallurgical Company Dalpolymetall produced 845,000 tonnes of complex ores, which is more than plan. Almost half of this volume was produced by Nikolaevsky mine.

All the ores produced were processed into metal concentrates, including 12,600 tonnes of lead, 17,900 tonnes of zinc and 36,200 tonnes of silver concentrates. This is the best result in ore production for the last five years although financial results turned out to be less impressive than in 2006. The explanation is the development of ores with lower concentrations of metals and the loss of a large Russian consumer Chelyabinsk Zinc Plant, which was not happy with the transportations costs.

Another long standing partner, Glenkor pursues a stringent price policy. In the APR countries, the company is known as the supplier of the concentrates of the best quality so the company is confident it will be able to market the increased amounts of concentrates.