The Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) has announced that it has signed an agreement with Ekaterinburg-based machine-building company Uralmashzavod for the supply of equipment and construction of the indurating machine No. 3 complex at its subsidiary Mikhailovsky Mining and Processing plant (MGOK).
Accordingly, MGOK's indurating machine No. 3 complex is expected to become the largest pelletizing plant in Russia with an annual production capacity of five million mt of high quality iron ore pellets for blast furnace production. The project, in which investments amount to Ruble 13 billion (about $421 million), will also allow MGOK to decrease production costs, as well as to reduce environmental pollution.
Following the commissioning of the indurating machine No. 3 complex, planned in H1 2013, MGOK's pellet production capacity will increase by 1.5 times. The new machine is supposed to meet growing demand for high quality iron ore materials, mainly from Russian steel producers.
The project, considered to be one of Metalloinvest's investment program priorities, was started in 2007, but was postponed in view of the global crisis.