Mechel, one of the leading Russian mining and steel groups, has announced that it has proceeded with project work procedures at one of its iron ore deposits.
Specifically, the company has reported a developing design estimate and approval documentation for launching works at Sivaglinskoye iron ore deposit, with 21 million mt of iron ore of estimated reserves for opencast mining, and with an average iron content of 48.6-53.3 percent. By the end of 2022, the company is expected to invest around RUB 2 billion ($27.3 million) in the project in question.
According to the official statement, the company has recently completed geological exploration surveys worth a total of RUB 385 million ($5.3 million). As of today, Mechel is undergoing procedures for acquiring the necessary mining equipment. The pilot commercial development is expected to begin in the fourth quarter of 2022 year, with some 300,000-400,000 mt of blast furnace and sinter iron ore mined up to the end of 2022. In 2023, the annual capacity of the deposit is expected to rise to one million mt of iron ore, with the total capacity of the company to reach 3.5 million mt, following the launch of the Pionerskoye iron ore deposit, the subsoil license for which Mechel holds as well.
“According to our estimations, Sivaglinskoye’s blast furnace and sinter ore are the products which are practically ready to be used. With this project’s launch, Mechel Group will be able to increase its iron ore self-sufficiency by approximately 15-20 percent, reaching 60 percent. We are going to launch a major iron ore facility which will become one of the industry’s leaders in Russia’s Far East federal district,” Mechel’s CEO, Oleg Korzhov, commented.