Evraz Group started developing Izykhgolskoye ore deposit belonging to its member Evrazruda as part of the corporate investment program aimed at supporting ore mining enterprises; the deposit is based in the Republic of Khakasia and has 11m tons of ore reserves. Most of the money needed for the project is to be invested within 2006 and 2007.

The launching of some new extracting facilities is part of Evraz Group strategy targeted at enhancing the profitability of mining business and making sure ore is supplied uninterruptedly to the company’s metallurgical enterprises; all this is achieved through strategic financing.

The new deposit is going to be developed in the surface mining mode, and the 57% iron content is expected to significantly decrease the operational expenses, particularly due to the possibility of skipping the primary processing stage. After the ore is crushed at the crushing and processing shop of Teyskiy subsidiary, it will be transported to Novokuznetsk in order to be agglomerated.

To assist the launch of the new deposit, the company had motorways, electric networks and a transformer substation put up and bought some modern, highly productive equipment.

The deposit has provided over 110 new jobs, with the amount of vacancies estimated to increase as the developing proceeds.

The solemn opening ceremony took place in Teyskiy subsidiary on November 22, 2006. The first 120 tons of local ore were sent to the crushing shop, accompanied by general applause, says the spokesperson for Evrazruda.