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Mechel Progresses in Development of Elga Coking Coal Deposit
02/18/2010 - At the beginning of February, two special heavy machinery convoys departed from the Upper Ulak station (Amur Region) where a Mechel OAO-owned construction base is located. The equipment, which is intended for development of Elga coking coal deposit, has reached the location of the new open pit mine construction.
At the beginning of February, two special heavy machinery convoys departed from the Upper Ulak station (Amur Region) where a Mechel OAO-owned construction base is located. The equipment is intended for development of Elga coking coal deposit.
Both machinery convoys have reached the location of the new open pit mine construction. Mechel says there will be five equipment and machinery convoys in total. They are expected to deliver all necessary equipment and materials to start construction of the open pit mine and mining operations before April 2010.
Exploration and operational mine site is planned to be commissioned in summer. Construction of the open pit mine would include all necessary stripping works. First coal is expected to be mined in November 2010.
The machinery packs include various mining and transport machines, including excavators, bulldozers, motor graders, dump trucks, fuel servicing trucks, timber trucks, as well as shift camp components. In total, more than 90 pieces of special-purpose machinery and large-scale equipment will be supplied for the deposit development.
A shift camp for 250 people as well as an industrial area, fuel and lubricants storage facility, and other necessary objects are to be built during the summer at the open pit construction site. A permanent settlement eventually will replace the camp, and shift workers arriving to work at the open pit and further development of the deposit will live there.
Currently, 2400 people (including all shift teams) are employed at the site of railway and mine construction; this figure is expected to reach 6000 in the summer.
All operations at the first stage of Elga coal deposit construction are implemented by Mechel OAO’s subsidiary Metallurgshachtspectzstroy ZAO.
“Development of the Elga coal deposit is known to be a complex and multifaceted project,” said Vladimir Polin, Senior Vice-President of Mechel OAO. “The construction progress is affected by both weather and geography conditions. Still, we have everything to successfully implement this project—experienced staff, resources as well as new state-of-the-art equipment and cutting-edge technology. Our work is clearly in line with our plans declared before, and we are sure that we’ll manage to commence coal mining at the Elga deposit as early as autumn.”
The company expects to mine up to 200,000 tonnes of coal this year, increasing that figure to 1 million tonnes in 2011.
“Timing of further Elga coal deposit development will depend on market conditions but, still, our main goal is to reach the 27-30 million tonnes of coal production at the deposit,” said Polin. “Thus, summing up production volumes of all Mechel’s coking coal production assets, the company will become one of the top three world’s largest producers and suppliers of coking coal concentrates.”
Mechel is one of the leading Russian mining and metals companies. Its business includes four segments: mining, steel, ferroalloy, and power. The company unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Its products are marketed domestically and internationally.
