Severstal to invest 5 bln rubles in developing Olenegorsk iron ore deposit

MURMANSK. June 30 (Interfax) - JSC Olkon (Olenegorsk Mining and Processing Plant, part of PJSC Severstal ) has launched an investment project to develop the Olenegorsk iron ore deposit, the company's press service said.

"The project budget exceeds 5 billion rubles," Olkon General Director Nikolai Seleznev was quoted as saying.

The investment plan involves open-pit mining until 2044-2045, transitioning to underground operations thereafter.

Development requires relocating existing infrastructure including water pipelines, slurry pipelines, traction substations, fueling stations, rail networks and crushed stone facilities. A new primary crushing facility will also be constructed at the Olenegorsk quarry.

"This complex phase - relocating all infrastructure and building new facilities - will conclude by 2030," Seleznev said.

Olkon has already constructed a new permanent power transmission line, with imminent plans to relocate rail spurs and build new water pipeline branches.

As reported, in 2024 Severstal updated Olkon's development strategy through 2040, envisioning over 90 billion rubles in total investments from 2025-2040. Three major quarries - Olenegorsk, Komsomolsky and Pechegubsky - will sustain primary production.

Olenegorsk MPP ranks as Russia's northernmost iron ore concentrate producer, manufacturing concentrate with over 68% iron content. The main consumer is Severstal's Cherepovets Steel Mill.

The key assets of Severstal's mining division include JSC Karelsky Okatysh, JSC Olkon (Murmansk region) and Yakovlevsky MPP (Belgorod region).