11

EVRAZ Completed Stage One Of Gorno-Shorsky Ore Mine Output Enhancement Project

Date of publication: 03.02.2015

Evrazruda started mining in a new +115-meter level with ore reserves of 37 million tonnes and iron content of up to 30%. State-of-the art self-propelled equipment is used to mine and haul rock, making the Gorno-Shorsky Ore Mine the first ore-mining site in the company that embraces underground ore-mining best practice.

“Using self-propelled mining equipment in ore mining is a first step towards the international best practice”, noted Marat Atnashev, Vice-President, Major Projects, Head of the Iron Ore Division, EVRAZ. “We believe that once Gorno-Shorsky Ore Mine is modernised, investments will pay back through a higher efficiency. Developing the new ore reserves alongside working the currently operated levels will enable us to nearly double the mine’s annual output to reach 4.8 million tonnes of raw ore by 2018. Despite the ongoing economic difficulties and the low pricing for ore we are positive that the investments we are making are the right choice. Gorno-Shorsky Ore Mine is a strategic supplier of raw materials for EVRAZ ZSMK, and the steady performance of the former will contribute to the stability of production at the latter, especially given the current market volatility”.

The ore mine reconstruction project started in 2009 and the cumulative investment EVRAZ has made so far stands at about RUB 4.5 billion. Stage One of the project at the +115-meter level saw construction of an underground ore-crushing facility, a wagon tippler, a crushing-and-screening machine, and three electrical substations. The shaft for ore transportation to the surface was deepened. Completion of Stage Two is expected by December, 2015. A storage for explosives, a wagon depot, an elevator, a water-drainage facility will be put in place at the -85-meter level. Also, preparatory works at the Novy Sheregesh site will be completed and self-propelled mining equipment will be deployed for extraction there.

###

For further information:

Media Relations:

London: +44 207 832 8998 Moscow: +7 495 937 6871

media@evraz.com

Investor Relations:

London: +44 207 832 8990 Moscow: +7 495 232 1370

ir@evraz.com


Back to the list