Highland Gold Mining Ltd., a Russian miner listed in London, said Tuesday that it boosted production by 4.6 percent to 167,544 ounces of gold in the second half of 2006 compared with the year-ago period.

Output from the company's main Mnogovershinnoye mine rose 8 percent to 151,146 ounces following a 15 percent improvement in average ore grades to 6.24 grams a ton, the company said in a statement.

Chief Executive Henry Horne said the company expects further improvements and higher results at MNV in 2007.

However, output at its other producing mine in Darasun was badly hit by a fatal fire in September. The company said Tuesday that production is still continuing at a reduced rate and that rehabilitation studies are still being conducted. More than two dozen workers were killed in the Sept. 7 fire.

Highland said its gross debt at the end of the year stood at US$81 million (euro62 million).

Shares in Highland Gold fell 2.4 percent to 186.5 pence (euro2.80; US$3.64) on the London Stock Exchange.