Sokolov-Sarbai Mining Production Association (SSGPO), a member of Eurasian Natural Resources Corporation (ENRC) and Kazakhstan''s biggest iron ore producer, plans to slash iron ore throughput by 40% in 2009, Interfax reported.

SSGPO processed 18 million tonnes of crude ore in 2008 and is targeting 11 million tonnes this year, said Serik Izkuzhenov, head of the industry department in the city of Rudny, where SSGPO is located.

Izkuzhenov said SSGPO was aiming to produce 8 million tonnes of iron ore concentrate and 3 million tonnes of pellets in 2009.

He said demand for iron ore commodities and, consequently, sales, had plummeted, although SSGPO was hoping to increase shipments to Magnitogorsk Iron & Steel Works, which is just over the border in Russia.

SSGPO will be looking for other markets at the same time, he said.

Crude ore production fell 8% in 2008 to 37 million tonnes.

Production started to plummet in October due to the drop in global demand and export prices. Local officials said in January that forecast production by SSGPO for 2009 was 27.2 million tonnes and forecast iron ore commodity sales 11 million tonnes.

SSGPO was working at half its capacity in January, when it was not shipping iron ore feedstock to MMK but exporting ore to China only.