ENRC First Quarter Alumina Output Slips

　　U.K.-listed, Kazakhstan-focused miner Eurasian Natural Resources PLC (ENRC.LN) said Thursday that production across its key commodities was restored to full capacity in the first quarter, and reported a significant jump in copper production.

　　The miner said total saleable copper production for the three months to March 31 grew 36.8% to 8.988 million metric tons, primarily as a result of additional ore output from ENRC's Kabolela South and Kakanda North pre-stripping program as well as higher copper grades at its Kabolela North facility.

　　ENRC said its ferroalloys and iron divisions operated at close to full capacity in the first quarter, although production in both divisions fell slightly compared to the year-earlier period.

　　"We have maintained production at full available capacity across most of our principal commodities, with recoveries in ferroalloys and iron ore production, as well as achieving a notable increase in copper production," said ENRC CEO Felix Vulis.

　　"However, depressed pricing and the temporary decrease in alumina production have impacted revenue for the quarter," he added, without stating a specific revenue figure.

　　Total ferroalloys production for the three months to March 31 fell 4.8% from a year ago to 375,000 tons, following a halt to production at it Tuoli facility in September. Production at ENRC's Aksu smelter were also below first quarter of 2011 levels due to recovery of production following emergency repairs at furnace 63 in the fourth quarter of last year.

　　The amount of iron ore the company extracted from the ground dropped 4.8% to 10.204 million tons and primary concentrate production fell 2.5% to 4.178 million tons, the miner said.

　　First quarter alumina production fell 18.3% on the year to 330,000 tons due to processing problems at ENRC's alumina refinery, the company said. ENRC expects alumina production to return to full capacity in the second half of this year. Meanwhile, first quarter primary aluminum production was 62,000 tons, in line with the first quarter of 2011.

　　ENRC's organic growth program remains on track, and it expects production to remain at or close to full available capacity for the full year, the miner said.

　　Numis Securities described ENRC's production as "mixed," saying that the company "continues to perform relatively well against a difficult macroeconomic environment, with better operational performance outdone by lower prices and sales."

　　As of 0737 GMT, ENRC was up 2.6% or 13 pence at 537 pence a share, giving it in a market capitalization of $6.92 billion. Meanwhile the FTSE 350 mining index was up 0.7%.