KAZAKH mining group ENRC yesterday blamed falling commodity prices and a “challenging economic environment” for declining revenues over the first half of the year.
The FTSE 100-listed miner reported lower underlying earnings of $1.14bn, down 41 per cent over the first half of the year. Earnings per share also fell 60 per cent to $0.36.
Revenues fell by 19 per cent to $3,246m (£2,070m), lower than the forecast $3.4bn.
It cut spending plans from $2.7bn to $2.4bn in 2012, primarily due to unallocated licences for a Brazilian iron ore project, which has pushed production back to 2016. Chief executive officer Felix Vulis said that ENRC had completed all required public hearings and was waiting for a response from the authorities as to whether the project could go ahead.
It is understood ENRC, which mines metals such as copper and iron ore predominantly out of Kazakhstan, could spin-off its African assets into a new London-listed vehicle but a decision is currently under review.
The shares closed 8.46 per cent down at 379.6p.