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Severstal’s Olcon Awarded License to Study New Reserve Deposit
12/28/2010 - ОАО Olcon, a business unit within OAO Severstal’s mining division, has obtained a license for the right to use subsoils for geological studies at the Svintsovye Tundry area, in the Murmansk Region in northwest Russia.
ОАО Olcon (the Olenegorsk Iron Ore Complex, a business unit within OAO Severstal’s mining division) has obtained a license for the right to use subsoils for geological studies at the Svintsovye Tundry (Lead Tundry) area, in the Murmansk Region in northwest Russia.
“We consider this new license for geological studies at the Svintsovye Tundry to be another step in our strategy to develop our mineral resource base, thereby ensuring and improving the efficiency of our long-term operations,” said Vasily Chernykh, CEO of Olcon.
The company said the level of investment in the Svintsovye Tundry deposit would depend on the results of the geological studies of the deposit, which spans 36.6 square kilometers and contains an estimated 91 million tonnes of iron ore, according to Russian standards. The area is characterized by high iron content (30.6%) and complex geology in comparison to Olcon’s other deposits.
The Svintsovye Tundry area is 10 kilometers away from the Kurkenpahk deposit and 16 kilometers away from the Kirovogorsky deposit, both of which are also currently being developed by Olcon. The Svintsovye Tundry is located near to another reserve deposit, the Volchiye Tundry (Lupine Tundry), which also has potential for development.
Earlier this year, Olcon received exploration and mining licenses for the Kurkenpahk iron ore deposit and for the East area of the South-Kakhozersk deposit in the Murmansk Region.
ОАО Olcon (Olenegorsk Iron Ore Complex) is part of the mining division of OAO Severstal, one of the world’s leading steel and mining companies. The principal consumer of Olcon’s iron ore concentrate is Severstal’s Cherepovets Steel Mill. In 2009 Olenegorsk Iron Ore Complex shipped 4.8 million tonnes of iron ore concentrate.
