Eurasian Natural Resources 2Q Volumes Across Group Up Vs 07

LONDON -(Dow Jones)- Eurasian Natural Resources Corporation, the holding company of a diversified natural resources group based in Kazakhstan, said Wednesday during the three months ended June 30, production volumes across the Group increased compared to the second quarter of 2007. Ore grades remained broadly consistent with the corresponding period. The Ferroalloys Division's production volumes (excluding Serov) increased as follows: 2% for saleable chrome ore; 34.2% for manganese concentrate; and 2.5% for total ferroalloys, including a 3.8% increase in high-carbon ferrochrome production. Serov added saleable chrome ore production of 34 thousand tonnes and total ferroalloys production of 70 thousand tonnes. The Iron Ore Division's production volumes increased as follows: 6.1% for iron ore extraction; 2.6% for primary concentrate; and 2.1% for saleable ore. There was a change in the saleable mix as concentrate production increased 15.7%, offsetting a 10% reduction in pellets. The reduction in pellets production was caused by a planned reconstruction of one pelletising unit that was still in progress during the quarter. Alumina and Aluminium Division production volumes increased as follows: 7.1% for bauxite extraction; and 4.7% for saleable alumina. Aluminium production commenced at the end of 2007. The Division produced 27 thousand tonnes of aluminium in the quarter. The Energy Division's production volumes increased 12.2% for coal mined and 0.9% for electricity generated. The Logistics Division's tonnage of goods transported by railway increased by 3.1%. The Chief Executive Officer, Dr Johannes Sittard, said overall growth in both production and saleable volumes was in line with the company's expectations. Sittard said: "In addition to good organic production growth, our second quarter production performance benefited from the acquisition of Serov, a Russian ferroalloy producer, and the continued build up of Phase 1 of the aluminium smelter, which reached its full operating capacity ahead of schedule. "In the second half of 2008, we expect continued organic growth across all divisions, and upon completion of the acquisition of a 50% stake in the 'Tuoli' ferroalloy plant in China we will benefit from additional ferrochrome production volumes. The completion of planned maintenance in the Iron Ore Division will ensure our annual production growth targets are met. "We continue to advance the implementation of our capital expenditure programme which will further enhance the Group's organic growth, the effects of which will be evident from 2010 onwards."