OREANDA-NEWS. August 12, 2010. Group production volumes overall for the quarter ended 30 June 2010 were significantly ahead of those in Q2 2009, which was adversely affected by cutbacks in response to the downturn. Our Ferroalloys and Iron Ore Divisions in Kazakhstan continued to operate at effectively full available capacity. In the Alumina and Aluminium Division there was a further improvement in aluminium volumes as the ramp up to full Phase 2 production capacity was completed. The Other Non-ferrous Division delivered a full quarter contribution and included production from Chambishi for the first time. Electricity generation decreased slightly, due to planned maintenance, reported the press-centre of KASE.

- Ferroalloys Division. Volumes for all alloy products showed very significant growth versus Q2 2009:

  - 4.6% increase for saleable chrome ore;

  - 40.1% increase for total ferroalloys; and

  - 30.2% increase for ferrochrome; high-carbon ferrochrome production increased 25.7%

- Iron Ore Division. Production volumes rose significantly compared to Q2 2009, reflecting the recovery in market activity:

  - 33.3% increase for iron ore extraction;

  - 27.9% increase for primary concentrate to a record level; and

  - the proportion of pellet in the saleable mix increased, reflecting improved demand. Saleable pellet production rose 61.6% and concentrate 7.5%.

- Alumina and Aluminium Division. Bauxite extraction and alumina production both increased 2.5% compared to Q2 2009. The Division produced 57 kt of aluminium, as the full Phase 2 capacity was reached in May 2010.

- Other Non-ferrous Division. Saleable copper production in Q2 2010 was 5,175 t, saleable cobalt concentrate production was 2,038 t and saleable cobalt metal production from Chambishi was 965 t. Production reflected the inclusion of Chambishi, higher grades, an increased mining fleet and improved mine planning.

- Energy Division. Coal extraction increased 7.7% compared to Q2 2009, in response to a recovery in demand. Electricity generation decreased 6.2% compared to Q2 2009, due to one turbine being out of operation for routine maintenance during April and May 2010. Internal sales rose 35.4% against Q2 2009.

- Logistics Division. The volume of goods transported by railway increased 13.1% versus the comparable period in 2009, reflecting improved production activity across the Group.

Felix J Vulis, Chief Executive Officer, said, "We are pleased to report increased production in all of our Divisions in Q2 2010. In Kazakhstan, for our principal products, we are operating at levels above those of Q2 2008, a period of high demand, and for the Other Non-ferrous Division production in Q2 2010 was in line with our production plan. We are operating at effectively full capacity in all Divisions and remain focused on the control of unit costs whilst continuing to closely monitor the level of demand for our products."