Magnesite Industrial Complex (part of Magnesite Group) melted its first batch of periclase from raw produce extracted in Goluboye deposit (based in Motyginskiy district of Krasnoyarsk Territory and currently developed by Magnesite Group within the framework of Strategic Development Program). Magnesite Group will have invested over 1bn RUR in the project by the end of 2009, says the PR Department of the holding.

Magnesite Industrial Complex received the first 400-ton batch of raw magnesite, and the first periclase made from this magnesite was produced today. The test melting performed in electric arc furnaces proved that this is a great quality product. It is already clear that processing of Siberian magnesite will result in obtaining melted powders with over 98% MgO content; the production of the powders is also bound to become more efficient technically and economically.

The company’s workers are planning to keep on experimenting with magnesite from Goluboye deposit; they have already designed a program that provides for additional baking of raw produce in rotary kilns as well as briquetting.

The explored reserves of Goluboye deposit have amounted to 15.5m tons so far. The estimated capacity of the mine comes to 200,000 tons a year, and this figure is expected to have been achieved by 2008. The mining began at the end of August 2006, with commercial production and delivery of raw produce scheduled for te beginning of 2007. The commercial production of this deposit will allow Magnesite Group to launch new premium quality products (both molded and unmolded) on the refractory goods market.

Magnesite Group is the only enterprise in the Commonwealth of the Independent States that has access to magnesite raw produce. Apart from Goluboye deposit, the holding owns a few Satka Group deposits in Chelyabinsk Regions, with the total amount of proved reserves coming to 130m tons. Given the potential of Goluboye deposit, the company has enough magnesite to use for the next 55 to 60 years.