Two of Russian steelmaker Severstal's mining division subsidiaries, Olenogorsk ore-processing works (Olkon) and Vorkutaugol, have secured renewable credit lines of $12 million each from Russia's Cherepovets region-based Metallurgical Commercial Bank (Metcombank).
The credit lines have been provided for a period of one year, and will be used by the companies for the replenishment of their cash flow.
Severstal subsidiary Olkon extracts iron ore and produces iron ore concentrate. Located in Olenegorsk in the Murmansk region in northwestern Russia, the deposit has an estimated life of 23 years based on the segment's estimates of JORC (Australasian Joint Ore Reserves Committee) reserves plus expected reserves extension.
Vorkutaugol is Russia's largest producer of coking coal, comprising five mines, the Yunyaginsky quarry and various beneficiation plants. Vorkutaugol extracts both coking and steam coal. It is located in the Russian city of Vorkuta in the Komi Republic, with an estimated life of 38 years based on the segment's estimates of JORC reserves plus expected reserves extension, and one open pit located within the Vorkutinskoye deposit.