* Underlying year EBITDA up 118 percent to $3.19 billion
* Revenue rises 72 percent to $6.60 billion
* Sees near-term risk of commodity market volatility
* Shares up 3.6 percent, slightly outperforms mining index
(Adds interview with company, share price)
By Julie Crust
LONDON, March 23 (Reuters) - Kazakh miner ENRC met forecasts with full-year underlying profit that more than doubled, on record production and demand recovery, and said the global economic outlook was still improving.
"We remain positive on the group's prospects for 2011, although the control of costs growth and the development of our assets in Africa will be important issues for management, as will be the continued near-term risk of commodity market volatility," chief executive Felix Vulis said on Wednesday.
Underlying 2010 earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 118 percent to $3.19 billion, on revenue up 72 percent to $6.60 billion.
ENRC has hired headhunters in its search for a new CEO, Vulis told Reuters. Vulis, who has a 12-month notice period, announced his resignation in February.
Shares in the FTSE-100 miner were up 3.6 percent at 1045 GMT, slightly outperforming a 2.1 percent higher British mining index.
ENRC would not comment on speculation a publicly listed Glencore could make a bid. It said it did not expect Glencore's status, whether as a public or private company, to affect its aluminium distribution agreement with the world's largest commodities trader.
Cost pressures have been rising across the mining industry and ENRC said prices for materials, transportation, fuel and other inputs, as well as logistics, were expected to show significant increases in 2011.
The main driver of costs in 2011 will be higher input material costs, chief financial officer Zaure Zaurbekova told Reuters. ENRC said it will continue to focus on cost controls.
Strong growth in developing economies was expected to continue to underpin strong demand and pricing, it said, adding output was expected to be maintained at full capacity.
Production of ENRC's principal commodities -- high carbon ferrochrome, iron ore, alumina, aluminium and coal -- were all at record levels. It announced output data on Feb 2.
ENRC, one of the world's biggest producers of ferrochrome, a key ingredient in stainless steel, said the recent earthquake and tsunami in Japan would likely hit demand for raw materials. "The auto sector in Japan is still impacted by the disaster and as long that goes on there has to be some impact on demand for steel and stainless steel," chief commercial officer Jim Cochrane told Reuters.
"Overall, stainless steel looks to be having a good year and demand for ferrochrome has picked up ... and we are quite optimistic about prices over the next three years," he said.
South African group Merafe Resources, the country's largest ferrochrome producer, said on Wednesday second-quarter European benchmark ferrochrome prices will rise 8 percent from the first quarter to $1.35 per pound.
Cochrane said the iron ore market remained relatively tight.
Also on Wednesday, London-listed iron ore producer Ferrexpo said pretax profit surged in 2010 on record output and significantly higher prices. (Editing by James Davey and Dan Lalor)