A group of the Czech ALTA’s representatives arrived at Magnitogorsk Iron & Steel Works (MMK) to discuss the issues related to financing the construction of Prioskolskiy Ore Mining and Processing Enterprise in Belgorod Region, Russia as well as a number of other cooperation options the two businesses could consider, MMK’s press officer reports.

In fact, the meeting was a follow-up on the strategic partnership agreement and a memorandum MMK Chairman Viktor Rashnikov and ALTA’s President Vladimir Plasil signed in Prague on July 15, 2008. According to the memorandum, ALTA is going to become the construction project’s general contractor and has to come up with the financing plan.

In addition to the memorandum, the two parties signed a ?200m framework contract for the delivery of equipment and preparing things for the uncovering of Prioskolskiy iron ore deposit.

MMK outbid its rivals in the auction in November 2006 and was therefore allowed to develop the deposit, believed to have over 2 billion tons of iron ore inside. In January 2008, the enterprise set up a subsidiary (known as Prioskolskiy Ore Mining and Processing Enterprise) in Belgorod Region and signed a contract with TsentrGiproRuda for the planning work.

The construction and launch of Prioskolskiy Ore Mining and Processing Enterprise will mean covering MMK’s iron ore needs for sixty years at least. The enterprise is expected to start operating in 2012 and to each the production capacity of 25 million tons of iron ore a year in 2016. This amount will provide for 80% of Magnitogorsk Iron & Steel Works’ iron ore needs.