The Russian steel and mining company Severstal has announced that its mining subsidiary Olenegorsk Iron Ore Complex (Olcon) has obtained a license for the right to use subsoils for geological studies in the Svintsovye Tundry area, in the Murmansk region in northwestern Russia.
Accordingly, the deposit spans 36.6 square kilometers and contains an estimated 91 million mt of iron ore, according to Russian standards. The area is characterized by high iron content (30.6 percent) and complex geology in comparison to Olcon's other deposits.
The Svintsovye Tundry area is located in the neighborhood of other two deposits currently being developed by Olcon, and near to another reserve deposit, the Volchiye Tundry, which also has potential for development.
The level of investment in the Svintsovye Tundry deposit will be dependent upon the results of the geological studies.
Earlier this year, Olcon received exploration and mining licenses for the Kurkenpahk iron ore deposit and for the eastern area of the South-Kakhozersk deposit in Russia's Murmansk region.
In 2009, Olcon shipped 4.8 million mt of iron ore concentrate to its customers. Severstal's Cherepovets Steel Mill is the principal consumer of Olcon's iron ore concentrate.