Mechel, one of the leading Russian mining and steelmaking companies, has announced that it has received subsoil licenses for researching, investigating and extracting iron ore in the Sutamsky area and in the Sivaglinsky deposit, both located in the Neryungri region of the Republic of Sakha (Yakutia) in Russia's Far East.
The Sutamsky iron ore area's estimated reserves under Russian standards are 1.35 billion mt with an Fe content average of 32-40 percent, while the Sivaglinsky deposit's reserves under Russian standards are about 26.4 million mt with an Fe content average of 53 percent.
The Sutamsky iron ore area, whose 25-year subsoil license cost RUR 91 million ($3 million), is in close proximity to Mechel's own transport lines making it suitable for development. Ore to be mined from the Sivaglinsky deposit can be used in steelmaking without undergoing beneficiation. The 10-year subsoil license of the Sivaglinsky deposit cost RUR 140 million ($4.7 million).