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24.11.06

Magnezit Group Ltd. manufactured the first batch of fused periclase from Siberian raw material

First batch of periclase from the raw magnesite of Deposit Goluboye was fused at Kombinat Magnezit JSC which makes part of Magnezit Group Ltd.. Development of this deposit in Motyginsk district of Krasnoyarsky krai is carried out by Magnezit Group Ltd. in accordance with the Program for strategic development. Total investments into this project for the period up to the end of 2009 will exceed 1 billion rubles.

In October the first 400 tons batch of raw magnesite was delivered to Kombinat Magnezit from Deposit Goluboye. First periclase was produced today from Siberian raw material. Results of trial fusions carried out in electric arc furnaces of powder production plant № 4 confirmed high quality of the mineral. Even now one can say with certitude that treatment of Siberian magnesite will permit to have stable source of fused powders with MgO content of more than 98 per cent and to considerably improve technical and economic indices during their production. In the nearest future trial works with magnesite from Deposit Goluboye will be continued. Specialists of Kombinat elaborated program according to which Siberian raw material will be tested also by burning in rotary kilns and then will be briquetted.

For the present prospected reserves of Deposit Goluboye amount to 15,5 million tons, calculated capacity of the open-cast mine which is planned to be achieved by 2008 amounts to 200 thousand tons. Mining works for stripping magnesite reserves were begun in late August of the current year and industrial-scale mining and shipment of raw material is planned for early 2007. Industrial development of Siberian deposit in Krasnoyarsky krai will permit Magnezit group to enter markets with new high-quality shaped and unshaped refractories.

Magnezit Group is the only company in CIS countries having access to magnesia raw materials. Besides Deposit Goluboye the Holding possesses several deposits of Satka group in Chelyabinsk region. Total volumes of proved reserves exceed 150 million tons. Taken into account Deposit Goluboye one can say that enterprises of the Group are provided for reserves of natural magnesite for the next 55 — 60 years.

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