Realizing investment projects UMMC is focused on technological renewing of the sites in accordance with the latest requirements, including environmental safety standards, on expanding its own raw materials base, increasing the production of end products, developing the new lines of business. Strategic programs on development of metallurgical and processing complexes up to 2015 and of mining complex up to 2020 have been developed.
Raw material complex
The specific character of doing business in mining and metallurgical industry requires special attention to the raw materials. In many aspects long-term business could live when company has certain and predictable feedstock reserves. Therefore, UMMC assigns a key role to raw material base compensation and extension.
UMMC mining complex includes 13 mining and processing enterprises. UMMC mining enterprises have got 130 licenses for the use of subsurface mineral resources with purpose of exploration and mining of natural resources.
Development of the major ore resource Gaiskiy GOK (Orenburg region) is an issue of the burning importance to the UMMC. In this connection the strategic program of the GOK development has been worked out. The main ideas of the program completely reflects the production process and support expanding the underground pit (by means of mining deep and super-deep levels), developing the deposit “Osenneye” and re-equipment of the Gaiskiy GOK concentrator.
As a result in the nearest future the concentrator is to achieve the processing rate of 8 million tones of ore, where 7 mln tpy falls on the underground pit, and 1 mln tpy falls on the open-pit mines “Letnee”, “Dombarovsko-Levoberezhnoe” and “Osenneye”.
In Bashkortostan Republic the following mining companies are of UMMC’s priority in developing: Bashkirskaya Med (“Yubileinoye” and “Dergamyshskoye” deposits).
Metallurgical complex
Tracing the development of its own copper and zinc feedstock base, the Group actively propagates its own downstream facilities.
 In 2006 Uralelectromed (Sverdlovsk region) initiated the reconstruction of copper refinery with increasing the capacity up to 500,000 tones of copper cathodes.
Within the scope of reconstruction Uralelectromed has been conducting technical re-equippment of copper-sulfate shop, chemical and metallurgical shop, copper-smelting shop, storage and railway facilities.
According to the program of perspective development of Electrozinc for 2007-2015, the plant has to ramp up the production of zinc up to 110,000 tpy and increase lead production up to 50,000 tpy. Within the framework of the program a new line for battery scrap handling is to be put into operation, the tank house is to be expanded with installation of extra series of cells, an oxygen plant is under commissioning, the lead cake filtration and drying systems are being reconstructed. Two technological lines, the main and standby, are supposed to be organized in the course of further modernization of sulfuric acid production.
The renovation of smelting facilities is primarily focused on the ecological problems.
From 2005 till 2009 UMMC intends to invest about $394 million in the Program of reconstruction and technical re-equipment of the chemical and metallurgical complex of Sredneuralsky Copper Smelter (Sverdlovsk region). The program provides for constructing the second Vanyukov’s furnace, two new technological systems in the sulfuric acid shop, retrofitting the effluent treatment unit and etc. The above mentioned activities will allow the plant to utilize process gas from copper-smelting facility to produce sulfuric acid and thereby to improve ecological situation and optimize the copper-smelting process.
The program of reconstruction of the chemical and metallurgical facility of OAO “Svyatogor” is underway. This program will provide the increasing of the sulfuric acid shop output by one and a half. It will provide substantial decreasing of atmospheric emissions. Step by step the Company makes copper-smelting process meet all European requirements on ecology.
In the ferrous sector the Group realizes its first project of constructing the mini-mill.
The company builds the electrometallurgical plant in Tyumen with the capacity of 550,000 tones of steel rolled bars per year. The project is based upon the latest achievements applicable to metallurgy using the electric-furnace method. Ferrous scrap will be used as charging material. Main technological equipment of the metallurgical plant is designed, supplied and installed by the Italian Company Danieli. According to preliminary figures, the project construction cost is estimated at 457 million EUR. Semi-fabricating complex On the basis of scientific, design and marketing studies the investment program on creating a new metallurgical facility at Kirov non-ferrous plant was developed at UMMC. In 2011 a technological complex with a whole cycle starting from smelting and casting and up to the production of rolled products 25 micron thick is to operate within Kirov non-ferrous plant. The new complex will include vertical continuous caster, multi-purpose rolling mill, thermal equipment and slitting line for particularly thin strips. Thus, the transparent technology will be created from casting through to the final product. The technology will be able to provide high quality and throughput for the whole process with low wastes generation and low production expenses. The designed capacity of the new equipment for production of high-quality flat rolled products is 11,000 tpy. The estimated investments to the project are beyond 22 million Euro.
Agricultural complex
In 2005 agricultural companies of the Group were united into the autonomous system. UMMC-Agro was established to manage the UMMC’s agricultural assets. Today it unites 6 companies in Sverdlovsk and Orenburg regions and in Bashkortostan Republic. The main activities of the agro- holding are cattle breeding, vegetable growing, plant growing, dairy production and frozen vegetables.
UMMC-Agro promotes two complete cycles of dairy food and vegetables production. The current strategy includes step-by-step modification of the process facilities. In 2009 they plan to finish construction of the third stage of a new cattle-breeding complex in “Patrushi” for 1800 heads and to commission the first stage of a modern greenhouse with weighing and packing line in Sadovy (Yekaterinburg suburbs). To meet customers demand the company is going to extend the range of its brands “Zdorovo!” and “Mister Green”. |
