[ferro-alloys.com] In coking coal mining, where the Company enjoys the long-term competitive advantage of being a large scale, low cost producer, we continued the integration of Raspadskaya and delivered on previously announced organic growth options. For example, the development of the Yerunakovskaya VIII mine was launched in February ahead of schedule and below budget. This coking coal mine has a nameplate capacity of 2.5 million tonnes per annum with an estimated cash cost of raw coal production of USD 40 per tonne, one of the lowest among CIS coal mines.

In addition, we continued work on the Mezhegey Phase I coking coal project which will ensure long term access to hard coking coal reserves.

In the iron ore mining division we continued to focus on cost savings and operational improvement programs during the period. At our key iron ore mining asset, EVRAZ KGOK, we succeeded in maintaining cash costs of iron ore products at USD 53 per tonne firmly securing the position of the asset as a low cost operation. Asset restructuring, primarily of underground iron ore mines, is also underway at Evrazruda following the closure of the Irba mine and further actions with regard to certain other Evrazruda mines are under review.

Looking longer term, EVRAZ has entered the Timir iron ore partnership to develop iron ore deposits in Southern Yakutia. Timir’s large iron ore resources and proximity to existing infrastructure provide for the efficient development of the project as a low cost operation. The realisation of the Timir project is fully in line with the Company’s strategy of securing attractively priced supplies of raw materials and is expected to replace the gradually depleting reserves of Evrazruda over the next 5 to 10 years.

Furthermore, we continue to explore options with regard to our non-core assets in both coal and iron ore with the objective of disposal or of minimizing their impact of on overall company performance.