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Russia's Norilsk Nickel to invest $14 mln into machinery upgrade of Arctic mine

May 03, 21:16 UTC+3 MURMANSK

The new machinery conforms to the highest global safety, performance and comfort standards, according to the company

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© Donat Sorokin/TASS

MURMANSK, May 3. /TASS/. Russian mining and metals company Norilsk Nickel will allocate 800 mln rubles ($14 mln) to acquire new machinery for Severny Mine of its affiliate Kola GMK in the Murmansk Region, press service of Kola GMK told TASS on Wednesday.

"New self-propelled units for inspection and excavation support, for cargo transportation, underground dump trucks, drilling units, etc., are planned to be acquired for the mine. Over 800 mln rubles ($14 mln) will be allocated in total to buy the machinery for Severny Mine," the press service said.

The new machinery conforms to the highest global safety, performance and comfort standards, the company said.

Severny Mine of Kola GMK has already received a new modern load-haul-dump machine recently. The weight of new machine is 30 tonnes, deputy section head of Severny Mine Ruslan Bodnaryuk told TASS. "Performance commands respect: about 120 buckets of 10 tonnes each can be carried in average over the shift," the company’s representative said. The new machine differs for the better from earlier models operated by the mine. It boasts glazed dustproof driver’s compartment, an air conditioner, heating, an upgraded seat and an automatic lubrication system supplying oil to all hinged joints and bearings.

Norilsk Nickel will allocate about 2 bln rubles ($34.9 mln) in total for Kola GMK in 2017. The company intends to procure 1,480 items of various equipment. "The production refit plan covers all main structural units of Kola GMK," the corporate press service said.

Norilsk Nickel will invest 27.7 bln rubles ($483.1 mln) into Kola GMK in total within the period of 2017-2018. These funds will be directed to implementation of strategic development projects, improvement of its economic and environmental performance and machinery and equipment upgrade, the company told TASS earlier.

Tapping of new mineral resources are among priorities. Development of pit resources of Zhdanovskoe Deposit is among the largest investment projects. Investment into this project will total 8.2 bln rubles ($143 mln). Delivery of the project will make possible to increase ore mining at Severny-Gluboky Mine to 7.5 mln tonnes per year within the period by 2035. Ore mining will be also underway at Sputnik Deposit, with the project value of 4.5 bln rubles ($78.5 mln).

The company will invest 6 bln rubles ($104.6 mln) into the upgrade of the copper production facility with application of a new roasting, leaching and electric extraction technology. Further to performance improvement, the project will also provide for reduction of atmospheric emissions and better ecological situation in Monchegorsk city and adjacent areas. Cathode copper output is planned at 77,000 tonnes per year.

Rollout of a new technology of electrolyte nickel production by electric extraction from chlorine dissolving solutions on the Monchegorsk site of Kola GMK is the most expensive corporate project. Production is planned at the rate of 145,000 tonnes per year. Capital expenses of Norilsk Nickel for the its implementation will be over 18 bln rubles ($313.9 mln). This is a strategic project for the company and one of the largest investment projects in the Murmansk Region.

Kola GMK is a leading production company in the Murmansk Region and one of the largest national producer of non-ferrous metals, including strategic ones. The share of Kola GMK in total volumes of Norilsk Nickel accounts for 39% of nickel and 42% of cobalt. Products are supplied to the domestic market and exported to European nations.

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