Chelyabinsk Zinc Plant Reports 5.3% Production Increase for the Q1 2008

Chelyabinsk Zinc Plant announces its production results for the first quarter of 2008.

January through March 2008, CZP produced 42,270 tn of SHG zinc and zinc based alloys, an increase of 5.3% as compared to the same period of 2007 (40,146 tn). 48.1% of the plant output was supplied to the domestic market.

CZP’s subsidiary, Nova Zinc LLC, operator of Akzhal zinc and lead ore mine in Kazakhstan, processed 335.6 thousand tn of ore in January – March of 2008, 1.1% less than for the same period of 2007 (339.3 thousand tn). Average zinc content in the ore for the period was 2.01% with average lead content of 0.34%, compared to 2.43% and 0.66% respectively a year ago. Production of zinc in zinc concentrate for the first three months of 2008 decreased 19% to 6,161 tn over the prior year result of the same period of 7,609 tn. Lead in lead concentrate production decreased by 49.8% to 931 tn (vs. 1,855 tn in January – March of 2007).

CZP’s subsidiary, The Brock Metal Company Limited (the leading UK supplier of zinc and aluminum die-casting alloys) sold 7,388 tn of products January through March 2008, 16.2% less than for the same period of 2007 (8,811 tn).