Kazakhstan-based mining group Eurasian Natural Resources Corporation Plc. (ENRC) has announced that it has increased its 2010 capital expenditure from $1.15 billion in 2009 to $1.5 billion, including $0.4 billion for capital repairs. Including new projects, mostly arising from acquisitions, ENRC's total ‘in progress' and ‘under review' capital expenditure amounts to $5.8 billion.
"In 2010 we reviewed our capital expenditure projects and reflected both our improved confidence in the future and the broadening range of opportunities," reads the company's statement.
Accordingly, ENRC's 2010 investment program for its ferroalloys division includes the continuation of the construction of new direct current (DC) furnaces at the Aktobe processing plant at a cost of approximately $590 million, with completion planned for 2012. This project is expected to enhance productivity and generate substantial cost savings, particularly for key input materials such as reductants, including coke. Further, the installation of modern smelting furnaces is expected to result in significant environmental and safety improvements.
In 2009, ENRC completed the construction of a second chrome ore pelletizing plant at Donskoy GOK with a capacity of 700,000 mt per annum. The project was completed on schedule and was operational from early July. The pelletizing plant also produces saleable products from the output of an enrichment plant. The total investment amounted to $120 million.
A second enrichment plant at Donskoy GOK was put into operation in H2 2009. Construction of the blending depository is expected to be complete in Q3 2010. Total capital expenditure is approximately $40 million.
Meanwhile, ENRC's 2010 investment program for its
iron ore division has been revised and feasibility studies are now being undertaken for the construction of a five million mt per annum pelletizer and a direct reduced iron/hot briquetted iron (DRI/HBI) plant with a capacity of 1.4 million mt per annum. The total project cost is estimated to be $850 million.
To support growing production, ENRC's
iron ore division is planning an expansion of its ore base. The expansion includes six existing mines as well as the development of a new deposit. The estimated expenditure to increase
iron ore extraction volumes by ten million mt per annum amounts to $535 million.
Other expansion initiatives under review are the construction of a cyclic conveyor complex at the Karchasky pit at SSGPO, which would allow ENRC to increase Karchasky's ore extraction capacity to 23 million mt per annum, and the expansion of the concentrating factory to 16 million mt of
iron ore per year.