Severstal may invest up to $15 mln in Yakovlevsky mine in 2018

LONDON, Nov 2 (PRIME) -- Russian steelmaker Severstal may invest up to U.S. $15 million in the Yakovlevsky mine in 2018, and will present a business plan for the asset by May 2018, CEO Alexander Shevelev told PRIME on Thursday.

“Next year investment will amount to up to $15 million,” he said.

The company acquired full control over the mine two weeks ago, and now it is carrying out analysis and appraisal of the asset. Severstal sees investment in reconstruction and re-equipment of the mine at about $30 million, he said.

The mine is a valuable asset. “This year, production at the field reached about 1 million tonnes per year, but we plan to raise it threefold or fourfold in the several coming years. We have ideas how to raise the capacity to 8–8.5 million tonnes a year,” he said.

The proved reserves of the Yakovleskoye iron ore field amount to about 9.6 billion rubles of ore with the iron content of about 61%, so the ore does not need beneficiation.

End