Korshunov hits 200 Mt and continues to modernise

Korshunov Mining Plant OAO has reached a milestone with its total production over its life reaching of 200 Mt of iron ore concentrate since the plant’s foundation. Korshunov today is a mining subsidiary of Mechel OAO, one of the leading Russian mining and metals companies. The company held a ceremony in Zheleznogorsk-Ilimskiy. The event was attended by the First Deputy Governor of the Irkutsk Region, Yury Paranichev; Head of the Nuzhne-Ilimskiy District, Simeon Guendelman; Executive Vice President for the Irkutsk Region of Mechel OAO, Boris Alekseev, and the employees and labour veterans of the plant.

Korshunov Mining Plant produced its first tonne of iron ore concentrate in February 1965. Following its affiliation with Mechel in 2003, the plant underwent further development and has produced about 17 Mt of iron ore concentrate over the last four years, increasing its output annually.

In the past four years, two sections of the plant were completely restored. New equipment was installed, comprising two rod mills, two ball mills, 22 magnetic separators, eight vacuum filters, and more than ten units of pumping equipment. In addition, three new rod mills, 50 magnetic separators and filter units were acquired. Mining equipment was substantially expanded to include 16 new 130-t BELAZ trucks, two new excavators, three drilling machines, and three bulldozers at Korshunov’s open pit mines.

Today, the plant receives its iron ore from three open pit mines: Korshunov, Rudnogorsk, and Tatyaninsk. Work is continuously targeted at modernizing production, implementing modern technologies, and improving production safety. This enables the Korshunov Mining Plant to become one of the most dynamically developing enterprises in the region, create new jobs, and developing local social infrastructure.

In line with Mechel’s capital expenditure program, the development of iron ore concentrate production envisages maintaining mine output at 5 Mt annually, which corresponds to the production capacity of the Korshunov Mining Plant, with concurrent cost reduction in iron ore production and concentration. The Company will continue to modernize mining and transportation equipment at the plant. Mechel plans to invest about $90 million for these purposes before 2010.