Severstal's Vorkutaugol looks to build new mine in northern Russia

Steelmaker Severstal’s coal-mining subsidiary Vorkutaugol is examining the possibility of building a new mine on its Usinski deposit with a potential output of 5 million tpy, the Russian group said on Friday March 22.

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Severstal awarded engineering company Snowden a contract to develop the concept of a mining field on the site in Russia’s Komi Republic.

Vorkutaugol and parent company Severstal Resources, which manages all the group’s mining assets, chose one of the five concepts that Snowden presented and the Australian company is now developing this.

The final concept for the mine’s development should be ready by autumn this year, Severstal said, with construction expected to start no later than 2017 and commissioning in 2020.

Vorkutaugol is also starting the process of finding a contractor to develop the mine’s topside, to include infrastructure and a beneficiation plant, Severstal said.

Vorkutaugol won a competition in late 2011 to develop the site at the Usinski deposit, paying 1.3 billion roubles ($42 million) for the licence.

Severstal’s stake in Vorkutaugol exceeds 90%, according to information on the group’s website.

Reserves and resources at Vorkutaugol’s six sites total 297 million tonnes of hard coking coal, Severstal said, while production of coking coal concentrate came to 5.3 million tonnes in 2010.

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