11 Aug 2009 16:40

MMK launches new iron ore mine

MOSCOW. Aug 11 (Interfax) - Magnitogorsk Iron & Steel Works (MMK) has produced its first iron ore at the Sosnovsky Mine in the Chelyabinsk region.

LLC Bakal Mining (BRU), in which MMK owns a 51%-stake, operates the mine.

MMK told Interfax that the mine would be capable of producing 70 million tonnes of ore. It could produce 370,000 tonnes in 2009 and 500,000 tonnes in 2010, and 2 million-2.5 million tpa when it hits full capacity.

MMK received around 4 million tonnes of iron ore commodities per quarter in 2008, but produced only 19% of this itself.

MMK is currently producing 29% of its own iron ore feedstock.

MMK bought the controlling stake in BRU for $15 million in September 2007.

The Bakal group of iron ore deposits, in the Chelyabinsk region's Satka district, contains 995.6 million tonnes or iron ore, including 34.2 million tonnes of brown hematite and 961.3 million tonnes of siderite, with Fe-content of 42.6% and 31.0%, respectively.

BRU mines and processes ore. It has eight open pits and one deep mine.