Karelsky Okatysh starts ore mining

Karelsky Okatysh, a part of the mining division of the Russian steel producer Severstal, has announced that it has begun iron ore mining and processing works at its new Korganga deposit, which holds an estimated 320 million metric tons of iron ore. The Korganga deposit is considered to be Karelsky Okatysh's largest investment project to date, costing a total of $100 million. Over the last four years, the company has invested $54 million in the deposit. In 2007 Korelsky Okatysh is planning to invest an additional $10 million in the new operations, with approximately a further $38 million to be invested by 2013. The new deposit is expected to produce about three million metric tons of iron ore in 2007, while the future annual capacity is likely to increase up to 10 million metric tons.