Russia's Mechel commissions Voskhod chrome plant in Kazakhstan

Russian metals producer Mechel said late Monday that it has commissioneda new mining and processing plant at the Voskhod chrome ore deposit ofKazakhstan. Russian President Dmitry Medvedev and Kazakhstan President of theRepublic Nursultan Nazarbayev officially opened the plant as part of anexhibition during a forum for both country's leaders Monday. Once the plant reaches its designed capacity, Mechel expects annual minedoutput will average 1.3 million mt/year of chromite ores, which will be usedto produce 950,000 mt/year of chrome concentrate. In turn, Mechel's TikhvinFerroalloy Smelting Plant will consume one-third of the concentrate, while theremaining volume will be marketed in Russia and internationally. Mechel CEO Igor Zyuzin said in a statement that the cost of the miningproject and processing plant construction totaled around $250 million, and heexpected annual sales volumes would average about $500 million. "The deposit is mined utilizing the underground method, and the processof mining, roadway support and raising ore from the mines is completelyautomated, making it highly efficient and ensuring high yields of the minedmineral products," he said. The project, Zyuzin said, "will generate economic growth for both Russiaand Kazakhstan, develop their bilateral trade and increase their mutualinvestments." It will also add around 500 new jobs in the Aktyubinsk region ofKazakhstan. The Voskhod deposit holds some 19.5 million mt of high-grade ore, thecompany said. Mechel acquired its Voskhod Chrome subsidiary as part of its Maytakeover of London-based Oriel Resources. --Moscow (Platts)