Russia's CHEK-SU.VK, a mining and smelting company whose core activity is the mining of manganese ores and production of manganese alloys, has signed a contract with Novokuznetsk-based Sibirsky Promstroyproect for the construction of a new ferroalloy plant in the city of Krasnoyarsk.
Accordingly, the scheduled period for the general designing of the new ferroalloys plant in Krasnoyarsk will be two years, while the job estimate will amount to more than Ruble 500 million (about $16.54 million). The contract is part of the implementation of CHEK-SU.VK's project for ferroalloy production from ores of the Usinsk deposits, located in the Kemerovo region.
In 2006, CHEK-SU.VK won the tender for the development of the Usinsk manganese ores deposits, which hold 98.5 million mt of manganese ore reserves. The company plans to mine up to 700,000 mt of ore per year.
At the end of the August this year, the Russian state corporation bank for development and foreign economic affairs Vnesheconombank (VEB) agreed to finance CHEK-SU.VK's project aimed at building a mining and smelting complex to mine and enrich manganese ore and manufacture ferroalloys, and also aimed at developing the Usinsk manganese ores deposits and building a ferroalloy plant. The project's total value is estimated at Ruble 22 billion (about $728 million).
The project provides for the building of mining-enrichment integrated works facilities in the vicinity of the Usinsk deposits (two mines, an enrichment factory, facilities of internal production and social infrastructure); for the construction of facilities of external infrastructure in the Khakasia republic (a tote road, power transmission lines and a transshipment terminal); and the building of a number of smelting production facilities in the city of Krasnoyarsk (a smelting shop, a melting stock treatment shop, storage facilities, production infrastructure facilities).
The completion of the construction of the enrichment plant and mines and the commissioning of smelting production are scheduled for 2013, while the designed capacity of the mining-enrichment integrated works is to be reached in 2016.
The implementation of the project is to contribute to import substitution of manganese alloy supplies to Russia and is to create more than 2,500 new jobs in the Kemerovo region, in the Khakasia republic and in the Krasnoyarsk region.
The project is included in the list of "Main Investment Projects of Smelting Industry Enterprises Provided for by the Strategy for the Development of Russia's Smelting Industry for a Period of up to the Year 2020 approved by the Russian Ministry of Industry and Trade."