Magnezit Group to invest 1.9 bln rubles in expanding fused magnesia output in Siberia
KRASNOYARSK. Jan 27 (Interfax) - Magnezit Group LLC plans to invest 1.9 billion rubles in expanding capacity to produce fused magnesia, an intermediary product in production of refractories, at the Kirgiteiskoye and Talskoye deposits in Krasnoyarsk Territory, the press service of the Yenisei Siberia Development Corporation told Interfax.
The project involves overhauling existing and building new facilities to mine magnesite at these deposits and modernizing production of refractory materials in order to cover the shortage of fused magnesia production.
"Magnezit Group LLC's existing capacity and the quality of magnesite raw material used for fusing make it possible to produce about 40,000 tonnes of fused magnesia per year. [...] This project is being implemented to increase the amount of magnesite melting to 50,000 tonnes per year, the press service said.
Magnezit is currently covering the supply shortage with imports of fused magnesia powder from China. But in order to ensure stable development and maintain its resource security, as well as strengthen its position on the market for refractory products, the company needs to modernize its own production facilities.
Magnezit, which is based in Chelyabinsk Region, manufactures refractory materials, the raw material for which is fused magnesia. The company is now developing its own capacity to produce this intermediary product.
There are sufficient amounts of the primary resource, but capacity needs to be expanded for production of fused magnesia that will be used for refractory production and replace Chinese raw materials, Magnezit told Interfax.
The Kirgiteiskoye and Talskoye deposits are located, respectively, in the Nizhny Priangarye and Motyginsky districts of Krasnoyarsk Territory and Magnezit has been developing them for years. Their development began as part of the creation of the Angara-Yenisei cluster in this Siberian region.
Magnezit Group is an integrated company that operates a full production-distribution cycle for fireproof products. The group includes production facilities that make fused magnesia, powders and other products, and testing, analytical and trading units. The group closed 2021 with a net profit of 1 billion rubles on revenue of 22.4 billion rubles.