In its latest results, Russian iron ore and steel major Metalloinvest says state works company Glavgosexpertiza has provided a positive assessment of a cyclical and continuous transportation system project at its Lebedinsky iron ore mine (LGOK). The detailed engineering, design, mining and preparatory works are ongoing. To finance this project, the company signed an agreement with Crédit Agricole CIB for a 12-year loan in the amount of €72 million, which is guaranteed by export credit agency Euler Hermes Aktiengesellschaft (Germany). The funds will be allocated to purchase equipment from TAKRAF GmbH (Germany). The Company has also developed technical solutions for a comprehensive development of premium products at LGOK.
In addition, as part of the development of the open-pit iron ore mine Mikhailovsky (MGOK), work continues on the construction of a crushing and conveyor facility. Glavgosexpertiza provided a positive assessment of the conveyor on the south-eastern side of the quarry, where the supply of equipment and construction and installation works are ongoing. For the conveyor on the north-eastern side of the quarry, an agreement was signed for the execution of design and exploration works. Work is underway to agree a contract for the supply of equipment. About 6% of the capital expenditure for 2018 was used to finance this development project.
The IPCC system at Lebedinsky GOK will expand the mine’s capacity to 55 Mt/y and is scheduled for completion by the second quarter of 2020. The second agreement of intent to collaborate also concerns the supply of an IPCC system with the goal of expanding the Mikhailovsky GOK’s mine capacity to 35 Mt/y and is scheduled for completion by the first quarter of 2022.
The expansion and efficiency improvements implemented at these mines will enable METALLOINVEST to continue to extract high quality and easily-beneficiated iron ore with a view to ensuring the long-term and sustainable production of required high-quality iron-ore concentrate. The capital and operational costs of a mine directly depend on the material’s transportation system and the implementation of an IPCC system at both mines allows for a substantial decrease in iron ore production and transport costs through significant efficiency improvements and the down-sizing of mine fleets.