Jul 30, 2008. /Lesprom.com/. Mondi, the biggest producer of office paper in Europe, said that low-cost emerging markets like Russia and South Africa lifted operating profits, Reuters reported. Half-year operating profit to June grew 8% to Euro 263 million, boosted by low-cost operations and cheap wood resources in Russia and South Africa, Mondi said. Pretax profit fell 32% due to an accounting charge. "In the second half, South Africa should see a further improvement as actions to enhance profitability continue to take effect," Mondi Group Chief Executive David Hathorn said in a statement. "This should help to offset a softening trading environment in Europe. Overall, Mondi expects to make progress for the year as a whole." Mondi, listed in London and Johannesburg, has a low cost base and heavy exposure to emerging markets that should help it ride out a downturn in Europe, Hathorn has said. Some 54% of its revenues and 65% of net operating assets come from emerging markets such as eastern Europe, Russia and South Africa. More than half its fibre demand comes from low-cost base supply from emerging markets in Russia and South Africa, Mondi said. These sources helped deliver Euro 58 million in cost savings, consistent with its targeted annual savings of at least 2% of its cash-denominated cost base, it added. Shares of Mondi, spun off from mining group Anglo American Plc last year, have fallen more than 40% since the start of the year, hurt by weak sentiment in financial and consumer markets.