|Realizing investment projects UMMC is focused on technological renewing of the sites in accordance with the latest requirements, including environmental safety standards, on expanding its own raw material base, increasing the production of end products, developing the new lines of business. Strategic programs on development of metallurgical and processing complexes up to 2015 and mining complex up to 2020 have been developed.
Raw material complex
The specific character of doing business in mining and metallurgical industry requires special attention to the raw materials. In many aspects long-term business could live when company has certain and predictable feedstock reserves. Therefore, UMMC assigns a key role to raw material base compensation and extension. About 70% of total investments in 2010 were spent for development of ore mining and processing infrastructure. Today UMMC’s smelters process 99% of own feedstock.
UMMC mining segment includes 24 mining and processing enterprises. UMMC mining enterprises have got 138 licenses for the use of subsurface mineral resources with purpose of exploration and mining of natural resources. This is development of copper, iron and complex ore deposits.
Development of the major ore resource Gaisky GOK (Orenburg oblast) is an issue of the burning importance to the UMMC. In this connection the strategic program of the GOK development has been worked out. The main ideas of the program completely reflects the production process and support expanding the underground pit (by means of mining deep and super-deep levels), developing the Dombrovsk group deposits and re-equipment of the Gaisky GOK concentrator. In 2011 UMMC is going to invest about RUR 4.3 bln. for the development of Gaisky GOK.
As a result in the nearest future the concentrator is to achieve the processing rate of 8 mln. tons of ore, where 7 mln. tpy falls on the underground mine and 1 mln. tpy on the open-pit.
In accordance with the Program of Mining and Dressing Enterprises Development in the Republic of Bashkortostan for 2011-2015 adopted in March of this year, ore mining volumes of these companies shall be increased from 7.5 mln. tpy to 10.5 mln. tpy. To meet this task UMMC, for its part, shall invest RUR 31 bln. during five years. There are two work directions: mining base expansion and growth of mining and dressing enterprises efficiency.
Development of Bashkirskaya Med (Yubileynoye deposit and Podolsk group deposits) is of the high priority for UMMC. In 2011 the first part of Khaybullinsk concentrator was put into operation at Yubileynoye deposit. Estimated capacity of this first part is 1.5 mln. tpy of ore. The most advanced technological decisions were applied for the concentrator construction. It is able to charge and process copper and copper-zinc ores simultaneously. Ore preparation and dressing scheme is rated at output of 20% copper concentrate and 50% zinc concentrate with high recovery indices.
According to the mining plan the second part of the concentrator with capacity of 1.5 mln. tpy of ore shall be brought in line in 2015. To utilize new capacities in full it is decided to increase mining volume by development of Yubileynoye deposit and Podolsk group deposits. In 2010 Bashkirskaya Med realized the project on construction of Yubileyny underground mine, got favorable opinion in Glavgosexpertiza of the RF and started building of two mine shafts. It is going to start extraction in 2015 taking into account gradual decline of ore mined at open-pit. At the same time design and exploration works were initiated at the deposits of Podolsk group. The company wishes to start building of two shafts here in the nearest future.
In spring of 2010 UMMC started construction of underground mine at Safyanovskoye deposit (Sverdlovsk oblast). The underground mining will be the second stage of Safyanovka development which is currently developed as an open-pit. Field reserves for underground mining are about 11 mln. tons allowing Safyanovskaya Med operation during next 25 years. According to the project schedule the first stage of the underground mine will be put into operation at the end of 2014.
Together with the program on feedstock expansion UMMC is interested in ore and concentrates quality improvement. In 2011 quality of copper concentrates in average shall be 20% and for zinc concentrate – 52%.
Tracing the development of its own copper and zinc feedstock base, the Group actively propagates its own downstream facilities.
UMMC is intended to complete the construction of the first stage of up-to-date tankhouse at Uralelektromed’ site till the end of 2011 (Verkhnyaya Pyshma, Sverdlovsk oblast). Cost estimates of works is RUR 4.4 bln., where over RUR 2.6 bln. has been spent as of today. The design of new tankhouse includes the latest developments and new technologies for copper electrorefining. Advanced voltage monitoring system will be introduced to decrease the production power consumption. Production processes and working operations will be integrated by means of mechanization and automatization. Following the introduction of new tankhouse with capacity of 150,000 tpy UMMC’s copper cathodes production will be increased up to 500,000 tpy.
According to the program of perspective development of Electrozink for 2007-2015, the plant has to ramp up the zinc production up to 110,000 tpy and increase lead production up to 50,000 tpy. The modernization of zinc production is underway. New three-stage zinc solutions treatment will be put into operation in leaching plant allowing the SHG zinc production. Charge blending and pelletizing plants will be installed in Waelz processing line increasing its efficiency by 10%. Electrolyte air cooling system (cooling towers) will be introduced in 2012 resulting in significant reduction of river water take-up and industrial effluents discharge.
The renovation of smelting facilities is primarily focused on the ecological problems.
The program of reconstruction of the chemical and metallurgical facility of Svyatogor is underway. This program will provide the increasing of the sulfuric acid shop output by one and a half. It will provide substantial decreasing of atmospheric emissions. Step by step the Company makes copper-smelting process meet all European requirements on ecology.
In the ferrous sector the Group realizes its first project of construction the mini-mill.
UMMC builds the electrometallurgical plant in Tyumen which cost is RUR 20 bln. The mini-mill will produce 550,000 tons of steel rolled bars per year for building, oil and gas and machine-building industries. The products will be consumed by such domestic markets as Tyumen oblast, Khanty-Mansiysk and Yamalo-Nenets Autonomous Regions, Omsk, Kurgan and Sverdlovsk oblasts. Today all required works are performed at the site, over ten large professional contractors are involved and almost all major equipment is delivered. The first output of the mini-mill is scheduled for 2013.
Within the preparation for Sochi Olympics-2014 UMMC takes a part in building of sport facilities. The company will complete erection of 7,000 seats Small Ice Arena which will be one of six arenas of the Olympic park. Architectural concept of the future arena was developed by StahlbauPichler (Italy). While selecting architectural ideas Italian specialists followed their wish to compose the image of this future arena with “European feeling of space and volume as well as with originality of European style”. The building under construction will have up-to-date equipment in accordance with world standards on light, sound and HD TV. As a result there are strict requirements to video walls, boards, press-center equipment and safety system operation. Under the general practice the cost of such building erection was determined as USD 7,000 per one seat.
Women ice-hockey tournament, some matches of man ice-hockey tournament and competitions of paralympic hockey-players are proposed for performance at Small Ice Arena during Olympic Games.
Creation of a complete cycle from raw material production to final product output is a strategic task of UMMC’s agricultural division development.
In March of 2011 UMMC-Agro brought in line the first stage of new greenhouse complex located not far from Ekaterinburg. Fresh, natural and environmentally sound tomatoes are cultivated at 4 hectares according to state-of-the-art technology. Low-capacity technology provides completely automatic computer system for making optimal microclimate, automated irrigation and customized plant nutrition system. In 2010 UMMC-Agro gathered 1,560 tons of tomatoes.
In general the greenhouse complex will include three parts with total area of 12 hectares and annual output of up to 6,500 tons of vegetables.
Total cost of the project is RUR 1,055 mln. Next two stages will be built in 2011-2012.