Russia’s Olenegorsk Mining and Processing Plant (Olkon), part of Russian steelmaker Severstal Group, has completed construction of new infrastructure at the Pechegubskoye deposit, marking a major milestone in its long-term investment strategy to expand iron ore production capacity, according to Severstal.
Investment milestone for Severstal’s mining division
Olkon has completed and successfully passed the final inspection of new infrastructure facilities built at the Pechegubskoye iron ore deposit, a key project under Severstal’s mining portfolio. “One of our core priorities is to expand iron ore concentrate production by 2027 and sustain it through 2040, supported by three major quarries including Pechegubskoye,” said Nikolay Seleznev, general director of Olkon.
Details of completed facilities
The project includes the maintenance and repair building and the administrative and amenity complex, both completed over one year and nine months at a cost exceeding RUB 1.8 billion. According to Yuri Teslenko, head of Olkon’s investment department, the new facilities are fully equipped with modern supply and exhaust ventilation, automatic fire suppression and smoke removal systems, and water purification technology. The site is self-sufficient in heat, water and electricity, ensuring operational resilience in harsh winter conditions.
Advanced technical infrastructure
The 4,000-square-meter maintenance and repair building includes six repair bays for 130–220-ton heavy-duty dump trucks, dedicated zones for mining equipment parts and spare parts, oil storage and vehicle wash areas and overhead cranes with lifting capacities from 2 mt to 50 mt.
This new infrastructure will enhance maintenance efficiency and safety while reducing equipment downtime, thereby improving the overall productivity of Olkon’s mining operations.