‘Vysokogorskiy Ore Mining and Processing Enterprise JSC (part of Evraz Group) has come up with a scheme to reduce production costs in 2006. The most significant change would affect the batch mixture that comes with the agglomerate as we are going to add some martite and slime of Ivanovskiy slime depository to it; this is expected to reduce out expenses dramatically,’ says the spokesperson for Evraz Group.

‘Another way to cut costs is to upgrade the turbine compressor of Yestyuninskaya mine, which is going to pay off handsomely (a 800% return on investments is predicted). The company is also planning to renovate the railroads at Magnetitovaya mine and decrease the overburden coming with the limestone extraction in Glavniy pit by 50,000 cubic meters. Other projects concern treating the NKR-100 rigs with a special solution that should greatly minimize the production costs as well.

The company has been implementing various schemes to reduce production costs for 2 years, and the results achieved in 2005 look very impressive,’ reports the spokesperson.