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Eurochem 20/10/2006

MARKETABLE OUTPUT OF EUROCHEM ENTERPRISE IN KOVDOR EXCEDEED RUR 6 BN IN THE FIRST 9 MONTHS OF 2006

During the first 9 months of the year the marketable output of Kovdorsky GOK, a part of EuroChem Mineral and Chemical Company, was RUR 6.12 bn (in comparable prices), or 100.16% of the level of the same period last year.

The year-to-date output of iron-ore concentrate was 4.26 million tonnes, or 98% of the year-ago level. The enterprise is preparing to the implementation of the investment project to substantially reduce sulphur content in iron-ore concentrate. It will permit to considerably improve product quality, gain competitive advantage in the European market, open new markets for the company, and increase efficiency.

During the first 9 months of the year the enterprise produced 1,487,710 tonnes of apatite concentrate, up 1.7% from the same period last year.

The output of merchant-grade baddeleyite concentrate grew 8% to 5,300 tonnes. Kovdorsky GOK is the only world's producers of baddeleyite concentrate - a unique zirconium-containing material.

The increase in apatite and baddeleyite concentrate output was made possible due to the success of EuroChem investment project which resulted in the launch of a new material processing flow diagram. The equipment upgrade made possible a parallel processing of ore and materials of technogenic origin (the so called "tails") at the dressing plant. Previously the plant used only one specific raw material, and a changeover to other materials led to scheduled operational shutdowns.