The Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has announced that the coal mining company Belon, in which it holds a 41.3 percent stake, will secure the steel producer's long-term coking coal supplies due to the commencement of operations at the Kostromovskaya mine in the Kemerovsk region.
The Kostromovskaya mine, equipped with cutting edge technology and automated processes, has an estimated annual production capacity of two million mt of coking coal of deficient grade, which will allow Belon to increase its coking coal production by 50 percent.
Commenting on the matter, MMK chairman Viktor Rashnikov stated, "The construction and commissioning of the Kostromovskaya mine represent a key milestone in the implementation of Belon`s plan of growth. Besides, the realization of this project is the next step that strengthens the strategic alliance of our companies and guarantees raw materials supply to MMK."
By 2012 Belon plans to increase its coal production to 14.4 million mt per year, including 7.9 million mt of coking coal.