Mechel PAO, one of the leading Russian mining and metals companies, has reported developing design estimate and approval documentation for launching works at the Sivaglinskoye iron ore deposit. The company will invest approximately RUB 2 billion in this project by the end of 2022. The deposit will be developed by opencast mining.
The Sivaglinskoye iron ore deposit is 135 km north of Neryungri and 9 km away from a railway link to the Baikal-Amur Mainline. It is also 3 km away from a 110-kilovolt power line connected to Neryungrinskaya Regional Power Plant. Mechel also holds the subsoil license to the Pionerskoye iron ore deposit 8 km away from the Sivaglinskoye deposit, which will enable the company in the long run to create a single enterprise uniting the two ore fields.
The Sivaglinskoye deposit has a surface size of 2.2 km2, with 21 million t of iron ore of estimated reserves for opencast mining, and with average iron content of 48.6 – 53.3%. Material and technical resources from Mechel Group’s Yakutugol Holding Company will be involved in its development among others.
At this time, the company has completed geological exploration surveys worth a total of RUB 385 million. Sivaglinskoye’s ore has been successfully processed in a series of industrial tests conducted at Chelyabinsk Metallurgical Plant. Mechel is currently undergoing procedures for acquiring necessary mining equipment. Sivaglinskoye’s pilot commercial development is due to begin in 4Q22, with some 300 000 – 400 000 t of blast-furnace and sinter ores mined before that year’s end. Starting in 2023, the deposit’s annual capacity is due to go up to 1 million tpy, with the complex’s total capacity to reach 3.5 million t with the launch of Pionerskoye.
“According to our estimates, Sivaglinskoye’s blast furnace and sinter ores are practically ready to use products. With this project’s launch, Mechel Group will be able to increase its iron ore self-sufficiency by approximately 15 – 20%, to reach 60%. In 2021 – 2022, we will invest about RUB 2 billion into this project. We plan to launch a major iron ore facility which will become one of the industry’s leaders in Russia’s Far East Federal District,” commented Mechel PAO’s CEO, Oleg Korzhov.
Read the article online at: https://www.globalminingreview.com/mining/10092021/mechel-launches-development-of-sivaglinskoye-iron-ore-deposit/