OREANDA-NEWS. January 14, 2009. OAO Raspadskaya (RTS and MICEX: RASP), one of Russia’s leading coking coal producers, has announced today its preliminary operating results for 2008 and 4Q2008.

The total production output of raw coal in 2008 amounted to 9.4 million tonnes and the sales volume of coal concentrate amounted to 7.0 million tonnes.

In line with the Company’s strategy on the increase of sales of the coal concentrate produced by its own preparation facilities as a product with a higher additional value, the sales of raw coal were at a minimum level.

Having all necessary technological means, Raspadskaya had planned to significantly increase its production volume from October 2008. But the global financial crisis and its impact on Russian metallurgical industry led to a considerable decrease in sales volume as well as in sales prices.

The weighted average sales price in 4Q2008 was 3,282 rubles or about USD 120 on FCA Mezhdurechensk basis per 1 tonne of coal concentrate.

The weighted average sales price for 2008 was 4,010 rubles or about USD 161 on FCA Mezhdurechensk basis per 1 tonne of coal concentrate which is more than two times higher than the price in 2007.
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Gennady Kozovoy, Raspadskaya’s CEO, commented:

“Raspadskaya maintains its position as one of the leading coking coal producers.  Taking into consideration present hardships in the industry and temporary decrease in sales volume, the Company has already adopted additional measures of control over costs, effective management of financial risks and liquidity.

We are positive of stability of our market position in middle term outlook and believe in gradual recovery of demand from steelmakers”.