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MMK Starts Production at Sosnovsky Iron Ore Deposit
08/13/2009 - The Magnitogorsk Iron and Steel Works OJSC officially commences production at its Sosnovsky deposit, which has estimated reserves of 70 million tonnes of iron ore.
The Magnitogorsk Iron and Steel Works OJSC (MMK) has officially commenced production at its Sosnovsky deposit.
The deposit, which is situated in the Chelyabinsk region some 360 km away from MMK’s production site, has been estimated to have reserves equal to 70 million tonnes of iron ore, which will allow the extraction of ore for about 40 years. The company said it plans to extract 370,000 tonnes of ore in 2009 and 500,000 tonnes in 2010.
Maximum production volumes at Sosnovsky deposit will equal to 2 to 2.5 million tonnes per annum, with sinter output of more then 1 million tonnes to be produced by a dry magnetic separation method.
MMK initially obtained its license to develop the Sosnovsky iron ore deposit in October 2003. The company later (February 2007) acquired 51% of the iron ore producing company OOO Bakalskoe Rudoupravlenie (OOO BRU) and in September 2007 transferred the license to develop the Sosnovsky deposit to OOO BRU. The official start of production was attended by officials from MMK as well as representatives from OOO BRU and the Ministry of natural resources.
The Magnitogorsk Iron and Steel Works OJSC (MMK) is among the world’s largest steel producers and is one of the leaders of Russia’s steel industry. The Company is a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of value added goods. In 2008 the Company produced 11.9 m tonnes of crude steel, and 10.9 m tonnes of commercial steel products. IAS sales stood at USD 10.6 bn with net income at USD 1.1 bn.
