Magnitogorsk Iron & Steel Works (MMK) was declared to have won the auction where the highest bidder was granted the right to use the subsoil resources of Kulmyakovsky iron ore deposit in Chelyabinsk Region for geological survey, exploration, and iron ore production, MMK reports.

The deposit is located within forty km to the north of Techenskoye deposit. The ores contained in the deposit are scarnified-magnetitic ones varying from poor (26%) to rich (64%) kinds, available from the surface down to 450 m below the ground and identical in type to the ore of Sosnovsky deposit located in the same area.

The resources of Kulmyakovsky deposit have been preliminarily estimated at 20 million tons (category R1) and 60 million tons (category R2).

MMK will be granted a license allowing it to use the subsoil resources of the deposit for twenty-five years.

Making sure the company can provide for its own raw materials is one of our enterprise’s strategic development goals. To achieve this goal, we are taking the full advantage of the Urals’ potential. The development of Kulmyakovsky deposit is yet another step on the way to creating MMK’s own raw materials base,’ says MMK BOD Chairman Viktor Rashnikov regarding the results of the auction.