Annual Report 2007 - Severstal
Annual Report 2007 - Severstal
Annual Report 2007 - Severstal
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Mining segment, export sales, FCA based with discounts/price premium<br />
<strong>2007</strong> 2006 Change year-on-year %<br />
Thousand US$ Thousand US$ Thousand US$<br />
tonnes million tonnes million tonnes million<br />
Coking coal 81 3.1 40 2.0 102.5 55.0<br />
Coking coal concentrate 814 62.5 488 45.7 66.8 36.8<br />
Steam coal 601 15.0 429 17.0 40.1 (11.8)<br />
Pellets 2,187 124.7 3,285 211.0 (33.4) (40.9)<br />
Iron ore concentrate – – – – n.a. n.a.<br />
Scrap metal – 250.0 – 17.6 n.a. 1,320.5<br />
Total products – 455.3 – 293.3 n.a. 55.2<br />
Shipping and other – 99.5 – 16.3 n.a. 506.7<br />
Total export sales – 554.8 – 309.6 n.a. 79.2<br />
Inter-segment transactions – (53.2) – (92.1) n.a. n.a.<br />
Main coal production projects<br />
Development of the Vorkutaugol mine<br />
In this project, we are linking the four existing mines<br />
(Komsomolskaya, Severnaya, Vorkutinskaya, Zapolyarnaya)<br />
with a single trunk conveyer line, and providing the necessary<br />
infrastructure, both above and below ground, so we can increase<br />
lift productivity. We have currently suspended work on this project<br />
while we review and improve the safety measures. The aim of the<br />
project, ultimately, is to reduce our fixed costs.<br />
Development of the Vorgashorskaya mine<br />
With this project, we are aiming to increase extraction at the mine,<br />
to 4.0 million tonnes of steam coal a year (run of mine).<br />
Main projects for extracting and refining iron ore<br />
Development of the Korpangsky field<br />
The aim of this project is to open up new sections of the field. We<br />
plan to extract 83 million tonnes of ore. Of this, 40 million tonnes<br />
will come from the Severny-2 section and 43 million tonnes from<br />
the Zapadny section. We will have finished the project by 2013.<br />
Construction of the Olenegorsky underground mine<br />
The aim of this project is to support Olkon’s resource base so<br />
we can guarantee production of 5 million tonnes of iron ore<br />
concentrate a year. We started the project in 2003 and began<br />
extracting in 2004. We plan to reach our target capacity by 2009,<br />
and to have developed our reserves by 2024.<br />
Increasing the production capacity of the Karelsky Okatysh<br />
ore-dressing plant<br />
This project will increase the plant’s annual production of<br />
processed ore to 33 million tonnes. Production volumes of iron ore<br />
concentrate will amount to 11.7 million tonnes. We will improve<br />
productivity by modernising our equipment. The project began<br />
in 2006 and is due to be completed in 2009.<br />
Projects for 2008<br />
Geological exploration at the Tabornoye gold field<br />
We will be evaluating the possibility of expanding gold production<br />
and developing explored gold reserves. The project is estimated<br />
to cost US$74.8 million.<br />
Optimising the decontamination and methane utilisation<br />
system at Vorkutaugol<br />
We will be working with Steag Saar Energie to build vacuumpumping<br />
stations that will pump methane away from the mines<br />
and convert it into electricity. The project is estimated to cost<br />
US$156.8 million.<br />
Organising the process for flotation upgrading of metal<br />
content at Karelsky Okatysh<br />
We will be aiming to reduce alloy content and increase iron content.<br />
The project is estimated to cost US$24.7 million.<br />
<strong>Severstal</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2007</strong> 39
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