Governor of Belgorod Region chairs meeting on Prioskolskiy Ore Mining and Processing Enterprise
12 July 2008 (11:49)
Governor of Belgorod Region Evgeniy Savchenko chaired a meeting of Prioskolskiy Ore Mining and Processing Enterprise Committee. The future enterprise is going to become one of Magnitogorsk Iron & Steel Works (MMK)’s subsidiaries.
The meeting was attended by MMK’s representatives involved in the construction of the ore mining enterprise (including MMK BOD Chairman Viktor Rashnikov). The attendees discussed the social projects currently carried out in Belgorod Region with MMK’s financial support. The implementation of the projects is monitored by an ad hoc fund. The fund’s council chooses the projects that will be implemented in Starooskolskoye, Gubkinskoye, and Chernyanskoye municipalities (all located in the vicinity of Prioskolskiy Ore Mining and Processing Enterprise’s construction site).
Magnitogorsk Iron & Steel Works is planning to invest 1.34 billion RUR in these projects in 2007-2009. Last year, 340 million RUR were allotted by the company, with another 250 million RUR provided in the first half of 2008. The money was largely directed to putting up a new road between Stariy Oskol and Gubkin. This four-lane highway (seventeen kilometers long) is going to cost some 2 billion RUR altogether and will probably be launched on November 4, 2008. The road is bound to become one of the most important traffic arteries in the area.
What is more, MMK and the regional budget will co-finance the development of the local territory, including the construction and restoration of healthcare facilities, dwellings, cultural landmarks, and about one hundred socially important buildings. The Governor of Belgorod Region approved of this program and suggested that the construction of a four-lane motorway connecting Stariy Oskol and Chernyanka should begin in 2009.
Some other points on the meeting’s agenda had to do with the design of administrative buildings and creation of natural gas and electricity supply systems within the enterprise’s premises and the environmental issues.
The development of Prioskolskiy iron ore deposit is MMK’s largest raw materials project. The deposit has been estimated to contain 45.2 million tons of valuable ore and more than 2 billion tons of unoxidized carbonate-facies iron formation. MMK received the license allowing it to develop the deposit at the end of 2006. MMK’s BOD Chairman Viktor Rashnikov and Governor of Belgorod Region Evgeniy Savchenko signed an agreement on socio-economic cooperation in September 2007 and registered the new enterprise on January 11, 2008. The enterprise intends to start the construction of Prioskolskiy Ore Mining and Processing Enterprise in 2009 and to launch the facility in 2016. The enterprise is predicted to produce up to 35 million tons of crude ore and some 15 million tons of pellets and iron-ore concentrate a year. This produce will provide for 100% of MMK’s iron ore needs for over 60 years, moreover, thanks to its geographical position, the deposit can supply iron ore to some foreign customers as well, MMK’s press officer says.
The meeting was attended by MMK’s representatives involved in the construction of the ore mining enterprise (including MMK BOD Chairman Viktor Rashnikov). The attendees discussed the social projects currently carried out in Belgorod Region with MMK’s financial support. The implementation of the projects is monitored by an ad hoc fund. The fund’s council chooses the projects that will be implemented in Starooskolskoye, Gubkinskoye, and Chernyanskoye municipalities (all located in the vicinity of Prioskolskiy Ore Mining and Processing Enterprise’s construction site).
Magnitogorsk Iron & Steel Works is planning to invest 1.34 billion RUR in these projects in 2007-2009. Last year, 340 million RUR were allotted by the company, with another 250 million RUR provided in the first half of 2008. The money was largely directed to putting up a new road between Stariy Oskol and Gubkin. This four-lane highway (seventeen kilometers long) is going to cost some 2 billion RUR altogether and will probably be launched on November 4, 2008. The road is bound to become one of the most important traffic arteries in the area.
What is more, MMK and the regional budget will co-finance the development of the local territory, including the construction and restoration of healthcare facilities, dwellings, cultural landmarks, and about one hundred socially important buildings. The Governor of Belgorod Region approved of this program and suggested that the construction of a four-lane motorway connecting Stariy Oskol and Chernyanka should begin in 2009.
Some other points on the meeting’s agenda had to do with the design of administrative buildings and creation of natural gas and electricity supply systems within the enterprise’s premises and the environmental issues.
The development of Prioskolskiy iron ore deposit is MMK’s largest raw materials project. The deposit has been estimated to contain 45.2 million tons of valuable ore and more than 2 billion tons of unoxidized carbonate-facies iron formation. MMK received the license allowing it to develop the deposit at the end of 2006. MMK’s BOD Chairman Viktor Rashnikov and Governor of Belgorod Region Evgeniy Savchenko signed an agreement on socio-economic cooperation in September 2007 and registered the new enterprise on January 11, 2008. The enterprise intends to start the construction of Prioskolskiy Ore Mining and Processing Enterprise in 2009 and to launch the facility in 2016. The enterprise is predicted to produce up to 35 million tons of crude ore and some 15 million tons of pellets and iron-ore concentrate a year. This produce will provide for 100% of MMK’s iron ore needs for over 60 years, moreover, thanks to its geographical position, the deposit can supply iron ore to some foreign customers as well, MMK’s press officer says.
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