Olenegorsk mining and processing plant (Olcon), a part of Russian steelmaker Severstal's mining division, has received a license to explore and mine iron ore from the eastern district of the South Kahozersk iron ore deposits in the Murmansk region of northwestern Russia.
Accordingly, the explored reserves of the eastern district of the South Kahozersk open-pit deposit are estimated at 24 million mt of magnetite iron ore with 25.83 percent iron content.
In February this year, Olcon also received an exploration and mining license for the Kurkenpahk iron ore deposit located in Murmansk. The Kurkenpahk deposit is located close to four of Olcon's existing open cast mines. The reserves in the northern district that are due to be mined are estimated at 14 million mt.
Currently, Olcon strip-mines at the Kirovogorsky Mine, at the 15th Anniversary of October Mine and at the Komsomolsky Mine. Strip-mining is combined with deep mining at the Olenegorsk Mine, where deep-seated deposits have been developed since 2005. Severstal Cherepovets steel mill is the main consumer of Olcon's iron ore concentrate. In 2009, Olcon shipped 4.8 million mt of iron ore concentrate to its customers.