The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced that it has contracted Hatch Engineering and Consulting, the Russian division of the Canadian Hatch Company, to carry out pre-project work on the development of its Prioskolskoye iron ore field located in Russia's Belgorod region.
Under the contract, Hatch Engineering and Consulting will develop and deliver to MMK a set of documents complete with the final results of its accomplished pre-project work. Hatch will hold a number of comparative probes and surveys to identify the most efficient method of developing the Prioskolskoye field. The company has committed to providing a solution that will ensure minimized land allotment costs, eliminate environmental risks and optimize MMK's capital and operating costs. The contractor will be responsible for drafting engineering documentation up to the phase of receiving a construction permit. Hatch will have six months following the effective date of the contract to accomplish the job.
The license to explore and develop the Prioskolskoye iron ore deposit was won by MMK at an auction in November 2006. The field's reserves are estimated at over two billion mt. The mining plant's planned capacity of up to 25 million mt per year will cover MMK's needs in iron ore raw materials for 60 years and more.