The financial problems of Russia’s only tin smelter have deepened. Chairman of the Board of Directors of Novosibirsk Tin Integrated Works (NOK ) Vladimir Sherstov said that the plant failed to raise RUR347 million (US$12.9 million) to redeem bonds. A technical default which started on October 2, 2008, has developed into a real default. The plant did not manage to pay off the debt by selling non-core assets or by offering a stake in NOK, up to a controlling interest. The plant will continue talks on the sale of assets and will try to invite a large investor, Kommersant -Sibir said.
Earlier in the week NOK reported a third quarter loss of RUR 4.2 million, compared to a net profit of RUR 23.2 million in Q2. The company’s turnover has slumped this year as a result of its inability to secure concentrate supplies. Russia’s largest tin mine, Sakhaolovo, stopped supplying the smelter earlier in the year. The mine has been under new ownership since July and is believed to be planning to export its production of some 2,500 tpy to SE Asia. NOK produced 2,898 tonnes of commercial tin in 2007, already well below its smelting capacity.
