Russian Copper Company is investing USD 627m in Mikheyevsky GOK

09.06.2011 — News

CHELYABINSK REGION.

The Russian Copper Company, CJSC, is investing 627 million US dollars in the construction of the Mikheyevsky Mining and Processing Integrated Works. Gazprombank is expected to give 490 million US dollars. The balance will be invested by the company through selling 30% of its stake in one of the traders' organizations.

The Press Service of the Russian Copper Company has informed "RusBusinessNews" that 107 million dollars was invested in the construction of the works in 2010. In the current year, the investment will total about 200 million dollars. The commencement of production operations is scheduled for the end of 2013.

The works is being built at the Mikheyevskoye porphyry copper deposit in the Chelyabinsk Region. Its capacity is estimated at 18 million tons of ore. The output of the concentrate will amount to 65 thousand tons a year, thus allowing the Russian Copper Company to double its output of commercial concentrate.

The Russian Copper Company was established in 2004 and is the third largest refined copper producer in Russia. It includes mining, processing and metallurgical factories located in five regions in Russia and in Kazakhstan. The RCC factories produce 200 thousand tons of copper cathodes and 190 thousand tons of copper rod per year.