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Production overview

[Ferro-Alloys.com]Manganese ore production decreased by 8.4% in 1Q16 vs. 4Q15 and was in line with 1Q15.

The Barbacena plant resumed production in February with the lower spot energy prices, while

the Ouro Preto ferroalloy plant in Minas Gerais remains shut as market demand was not

strong enough to enable the resumption of the operations at both plants.

Manganese ore production

Production at the Azul manganese mine reached 434,000 t in 1Q16, 10.5% lower than in 4Q15 as a result of lower sinter feed availability, and 6.5% higher than in 1Q15.

Production at the Urucum mine reached 162,000 t in 1Q16, 2.2% and 12.0% lower than in 4Q15 and 1Q15, respectively, as a result of lower operational performance of mine equipment.

Ferroalloy production

Ferroalloy production in 1Q16 was 25,000 t, 24.3% higher than in 4Q15, due to the reopening of the Barbacena plant in February, as the operation became economically viable with lower energy prices, and 8.9% lower than in 1Q15.

Production was comprised of 14,650 t of ferrosilicon manganese alloys (FeSiMn), 8,000 t of high-carbon manganese alloys (FeMnHC) and 2,150 t of medium-carbon manganese alloys(FeMnMC).

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• [Editor:Sophie]