Novosibirsk Tin Combine (NOK), Russia’s only significant tin smelter, is facing major financial and production problems, according to recent reports. On Friday the company failed to redeem bonds valued at 347 million roubles (US$13.2 million). This was the second tranche of a 400 million rouble issue placed in September 2006. “Management is carrying out a set of measures to resolve the situation as quickly as possible," the company said on October 6, according to Interfax. NOK had been preparing to sell a number of non-core enterprises in order to honour its commitments to bondholders. "But the general financial crisis has set this process back and the transaction has not yet been completed," NOK said.
Meanwhile the Novosibirsk region police department is reported to have launched a criminal tax evasion investigation against NOK general director Alexander Dugelny. The tax claim is estimated at 7.5 million roubles.
NOK reported a 170% year-on-year rise in net profit to 23.2 million roubles in the first half of 2008, but revenue fell by 27% to 243.9 million roubles due to lower production of tin and solder caused by a shortage of tin concentrate. NOK said it stopped receiving concentrate from the Sakhaolovo mining company in the second quarter and was unable to offset the shortage with supplies from other sources. Sakhaolovo is the largest tin mine in Russia and is now believed to be exporting its concentrates to SE Asia. NOK produced 2,898 tonnes of commercial tin in 2007.
