Severstal Resources, the raw material division of the Russian steelmaker Severstal, is planning to invest more than $2 billion in development of iron ore and coal production in the 2008-2012 period.
Accordingly, the company is planning to invest $1 billion in its subsidiary Vorkutaugol so as to increase its annual coal production capacity by 16 percent to 8.6 million mt by 2012. Severstal also intends to invest $375 million in Olenegorsk GOK to increase its iron ore production capacity by six percent to five million mt. Furthermore, the investment in the group's iron ore and pellets producer Karelskiy Okatish will amount to $743 million. As a result of this investment, the annual production capacity of the company is set to increase by 14 percent to 11.4 million mt of iron ore.
In addition to capacity expansion plans for its existing operations, Severstal is also eyeing the acquisition of licenses for development of coal deposits. The main targets of the company will be deposits in the Pechersky coal basin, in Tuva and also in southern Yakutia.