Russia’s Mechel plans to invest RUB 2bn ($27.4mn) by the end of 2022 on the Sivaglinskoye iron ore deposit, which has 21mn mt of iron ore reserves estimate with an average iron content of 48.6-53.3pc.
The company reported that it is developing design estimates and approval documentation for the launch of the mine. Mechel’s Yakutugol Holding Company will be involved in developing its material and technical resources, the company stated.
Mechel has successfully completed the geological exploration at the mine at a cost of RUB 385mn and is now focused on acquiring necessary mining equipment. The company has projected to start Sivaglinkoye’s pilot commercial development by the end of next year and expects an estimated 300-400,000mt of sinter ore mined before the end of 2022.
By 2023, the firm expects the project’s annual capacity to go up to 1mn mt and project’s the complex’s capacity to increase to 3.5mn mt after it also launches Pionerskoye. Mechel stated that with this launch it can increase its iron capacity by another 15-20pc approximately to reach 60pc capacity.
$1 = RUB 72.99