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22.01.07

Magnezit Group Ltd. increases volumes of raw magnesite mining

Last week «Magnezitovoya» mine (town of Satka) brought to grass the four millionth ton of raw magnesite.

Their first million tons was mined on August 10. 2001. Since then the mine annually increases volumes of mining. In 2006 they delivered to production plants 750 thousand tons of raw magnesite and during the current year this figure will grow by another 100 thousand tons.

Increase of mined raw material volumes is favoured by operation of new mining equipment brought to the mine within the framework of investment program. This equipment includes: drilling diesel machine «BOOMER-282», bulldozer «Б-10-Ш», two all-wheel road-trains «МОаЗ» produced in Byelorussia. At present the road-trains are being tested on the renewed level of +260 meters. They are supposed to be used not only for transporting filling stone to chambers but also for taking the ore out of pit-faces to reloading site.

Magnezit Group Ltd. possesses Satka group of magnesite deposits in Chelyabinsk region which is developed by Kombinat Magnezit and Deposit Goluboye in Krasnoyarsk krai. Development of the latter was begun last year.

Satka group of deposits is represented by deposits near settlements Yelnichnoye (Satka district) and Semibratskoye (near town of Zlatoust). Investment program of 2007 envisages allocation of nearly 100 million rubles to begin works at these deposits.

Yelnichnoye deposit will be placed in operation instead of Karagai open-cast mine which runs low now. During the current year it is planned to make development project, to buy equipment and to begin preparation of the deposit for operation, in particular to build a road, transmission facilities, system of water pumping, warehouses etc. At present project assignment has been elaborated and talks with designers have been conducted. Besides it is necessary to receive license for development of this deposit.

Prospecting works are planned for Semibratskoye magnesite deposit. With this end in view it is planned to create in 2007 a geological survey site. For this purpose it is necessary to employ people, to purchase equipment.

Total volumes of proved reserves in both deposits surpass 150 million tons. Taking into account Deposit Goluboye one can say that enterprises of Magnezit Group Ltd. are provided for reserves of natural magnesite for the next 55 — 60 years.

«Our own deposits represent the most important competitive advantage of the Group. They ensure strong positions of the company on the Russian and the world market, — underlined General Director of Magnezit Group Ltd. Sergei Odegov. — We intend in the future to develop our own raw materials base: to carry out additional prospecting works, to implement all-round program with the aim of increasing effectiveness of raw materials utilization, to perfect technologies and methods of magnesite mining.

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