Mechel, one of Russia’s leading metals and mining companies, has resumed implementation of its large-scale iron ore project in the Russian Yakutia, that will allow the company to increase the supplies of raw materials for its needs amid high global prices.
Under the terms of the project, the company will start the development of Sivaglinsky iron ore deposit. So far, the company has begun the development of design estimates and permits for the project, planning to start operation in the Q4 2022. Investments in the project by the end of 2022 will amount to about 2 billion rubles.
By the end of 2022 the company intends to produce 300,000-400,000 tons of ore from the field, while starting from 2023 the annual production will amount to about 1 million tons.
According to the company, after the commissioning of another iron ore field of the company in Yakutia - Pionerskoye - the total production capacity of its assets in the region will reach 3.5 million tons of ore per year. A Mechel spokesman explained to the Russian Vedomosti business paper that the launch of Pionerskoye is planned "in the next five to six years."
Mechel has held the license to develop the Sivaglinskoye iron ore deposit since March 2012 through its subsidiary Yakutugol. The deposit is located 135 km north of Neryungri (Yakutia) and 9 km from the railway line adjacent to the BAM. The area of the deposit is 2.2 sq. km, reserves for open-pit mining - 21 million tons of ore. Currently, exploration work has been completed. The Pionerskoye iron ore deposit is located at a distance of 8 km from the project, the license for which is also held by Yakutugol.
By: Eugen Gerden