26 Oct 2010 11:41
Open Joint Stock Company
Magnitogorsk Iron and Steel Works
Press Release
MMK Contracted Hatch to Design Most Efficient Method of Prioskolskoye Deposit Development
October 26, 2010, Magnitogorsk, Russian Federation
Magnitogorsk Iron & Steel Works (MMK) Hired Hatch Engineering and Consulting in Russia to pre-project the development of Prioskolskoye iron ores field.
Under the contract, Hatch Engineering and Consulting, Russian division of the Canadian Hatch Company, will develop and deliver to MMK the set of documents complete with the final results of accomplished work. Hatch will hold a number of comparative probes and surveys to identify a most efficient method of Prioskolskoye field development. The company has committed to provide a solution that will ensure minimized land allotment costs, eliminate environmental risks and optimize MMK's capital- and operating costs. The contractor will be responsible for drafting engineering documentation up to the phase of receiving a construction permit. Hatch will have six months following the effective date of the contract to accomplish the job.
As the winner in an auction held in 2006, MMK has the license to explore and develop Prioskolskoye iron ores deposit located in Russia's Belgorod Region. The field's reserves are estimated at over 2 bn tons. The mining plant's planned capacity of up to 25 mtpy will cover MMK's needs in iron-ore raw materials for 60 years and more.
About OJSC MMK
OJSC MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. MMK implements MMK-Atakas project in Turkey with annual capacity of 2.3 mln tons of flat steel. In 2009 the company produced 9.6 mln tons of crude steel and 8.8 mln tons of commercial steel products. MMK Group revenue in 2009 stood at USD 5.081 bn, EBITDA at USD 1.285 bn, profit for the period - USD 219 mln.
About Hatch Engineering and Consulting
Hatch Engineering and Consulting is a Russian division of the Canadian Hatch Company, an expert in ore miming projects development and implementation around the world. Hatch's expertise in the miming industry includes all types of mining operations ranging from building mining plants from the scratch to reconstruction and renovation of existing minefields in all the climatic zones of the globe.
OJSC MMK Communications Department:
| Kirill Golubkov tel.: +7 495 662 3552 (ext 6044) kgolubkov@mmk.ru
| Elena Evstigneyeva tel.: +7 495 662 3552 (ext 6096) evstigneevaed@mmk.ru
| Alexander Proskurov tel.: +7 3519 246303 proskurov@mmk.ru
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