The Council of the development of the Republic of Khakassiya has made a positive decision regarding the manganese plant

The project of the “Production of electrolytic metal manganese for the special steels based on the ores of Usinsk deposit” was put forward on the Council of the development of the Republic of Khakassiya” on the 10th of November.

Victor Khrolenko, the CEO of CHEK-SU, has made a detailed report about the future plant. The project includes the development of the largest deposit of manganese ores – The Usinsk manganese field in Kemerovo Region, and also, the launch of mining processing plant and the construction of the electrolytic metal manganese production plant in Khakassiya. This project is included in the “Strategy of the development of ferrous metallurgy in Russia in 2014 – 2020 years, with the perspective until 2030”, which was approved by Minpromtorg of Russia on 5th of May, 2014. The launch of the production will provide Russian metallurgists with the raw materials, necessary for the production of steel, and it will eliminate the need to buy it abroad.

The supply of the Usinsk deposit only on the open pit mining will last 45 years at minimum and the production will be launched in 2019 – given that the project financing starts in the beginning of the next year.

The company has the positive report from Glavgosexpertiza and has the rights to construct the pits and the mining processing plant. The public hearings were held in September in Tuim, where the unanimous positive vote was registered.

– We are interested in this production facility, given positive result of the environmental checks. I am grateful that you are solving this issue, – pointed out the Head of Khakassiya Victor Zimin on the meeting.

Currently the investment already made in the project amounts by more than 12 bln. Rubles. The major part of this investment went to the construction of the road to Usinsk deposit. Now, thanks to CHEK – SU the deposit can be accessed all year round regardless the weather.

The production of Russian manganese will be in line with the modern technology, which is established in China. China is attributable for 98% of the metal manganese procurement on the world market and the production technology meets the harshest requirements in terms of environmental safety. The general contractor of the mining processing plant and the EMM plant will be the Chinese company – Sinosteel – the world leader in engineering, mining and metallurgy.

The ore of the Usinsk deposit will be extracted by the open pit method and will be enriched by crushing, ablution and separation. “There will be no reagents on the MPP” – pointed out Victor Khrolenko. The enrichment method is purely mechanical. The crushed concentrate will electrolised. This method of metal extraction will rule out the need in ore-smelting furnaces and the emissions associated with them and, also, achieve a very high concentration of manganese in the final product – 99.8%.

It is planned that the creditor of the project will the State corporation “Vhesheconombank”, which attracts the major part of the funds from the Chinese state bank – Eximbank. The agreement of the credit line between two banks was signed in the presence of the leaders of Russia and China on the 8th of May this year. According to the document Eximbank will provide 3,9 bln. CNY for 15 years.

The launch of the project will bring hundreds of millions of rubles to the budget of Khakassiya and will also create employment opportunities for local population. During the construction phase there will be around two thousand people involved and after the beginning of the operational phase there will be no less than 1 600 staff employed on the plant, excluding the employees on the complimentary productions.

After looking at the project the Council of the development of the Republic of Khakassiya acknowledged positive prospects for the social and economic development of the region.

FAQ: The Council of the development of the Republic of Khakassia at the Head of the Republic of Khakassia provides coordination between state authorities of the Republic, territorial bodies of federal executive bodies, municipal administration, business, science and education in the formation of conditions for sustainable economic development. Council is considering investment projects and makes decisions about their priorities for the region. Organization and preparation of investment projects for consideration by the Presidium of the Council by the Ministry of Economy of the Republic of Khakassia.