OOO Industrial Metallurgical Holding Management Company was set up in 2002. The holding comprises a number of metallurgical, coke chemical and coal-mining enterprises located in Siberia, the Ural region, and Central Russia. The biggest enterprises among these are OAO Tulachermet, one of the leaders in ferrous metallurgy, and OAO Koks, one of the major producers of metallurgical coke in Russia. Other big companies include OAO Vanadium Tula, OAO Polema, ZAO Krontif-Center, OAO Berezovskaya Concentrating Mill, OOO Koksovy Site, ZAO Siberian Resources, ZAO Inertnik, OAO Ufaleinickel, and ZAO PO Rezhnickel.
While managing the business of the holding as a vertically integrated structure of metallurgical production, special attention has been recently devoted to the raw material constituent. In particular, coal production has become one of the priority directions for the holding.
OAO “Koksovy site”
The first project in this field, OAO Koksovy Site (Prokopevsko-Kiselevsky coal basin, Kiselevsk, Kemerovo Region) was set up in July 2002 on the production area of the liquidated Vakhrushev mine.
Commercial reserves of coal (coking (K) and lean baking (OS) grades) total about 14 mln tons. Opencast mining of coke-coal started in 1998. Until the inclusion of the enterprise in Industrial Metallurgical Holding the site excavated 12 thousand tons of coal a month on the average, volumes of overburden mining did not exceed 200 thousands m3.
Since Industrial Metallurgical Holding started to manage the enterprise, the strip mine has become one of the leading coal enterprises of Prokopevsko-Kiselevsky coal basin and taken the lead in technical equipment rate.
Located in the town of Kiselevsk, where housing stock is either dilapidated, or in dangerous condition, Koksovy mine site has moved more than one thousand families from the sanitary protection zone over the past three years. In addition to opencast coal mining, the Holding is also engaged in underground coal extraction in Kuzbass (Kuznetsk basin) through ZAO Siberian Resources. One of the mines, Vladimirskaya, has already been commissioned.
Vladimirovskaya Mine
The Vladimirskaya mine was commissioned in April 2005. Since 2003 the enterprise has been part of Industrial Metallurgical Holding. The mining area is located in the central part of the Kemerovo geological and economic region in Kuzbas (Kuznetsk basin), 30 km north from the city of Kemerovo. The mine’s reserves total 6,394,000 tons.
The Vladimirskaya mine coals are marked as deficit ‘coking baking’ (KS) and ‘coking lean’ (KO) grades, and are used in a coke charge for production of metallurgical coke. The annual mine capacity is 700 – 800 thousand tons of coal.
The unloading of the mined coal will be performed with the help of heavy-duty dump tracks, which will transport the coal to the Berezovskaya central concentrating mill. In 2006, construction of coal-storage facilities has begun.
Romanovskaya Mine
The northern part of the Kemerovo geological & economical district of Kuzbass, 6 km away from Berezovsky are home to the grounds of the Romanovskaya Mine. The mine was commissioned in 2007. Its reserves are valued at more than 21 mil tons of coal. The mine has a confirmed designed capacity of 900 to 1100 thousand tons of coal per year with one working face in operation. The Abramovsky seam was opened-up through three inclines – those used for ventilation, conveying and track purposes. Coal is transported from the mining and development faces up to the ground technological system with the aid of a conveyor. Monorail vehicles with the diesel-hydraulic locomotive LPG70/DO produced by the Ferrit Company, Czech Republic, are utilised for transportation of accessory materials, equipment and people.
Butovskaya Mine
The Joint-stock Company Koks has obtained the license to develop the “Chesnokovsky" site at the Kemerovsky coal basin. The site, located in the Kemerovsky district between the Kedrovsky and Boroboy villages, is rich in coking coals: the amount of coal in place is 107 million tons. The name of the future mine, Butovskay, seems to bring into focus the continuinty of mining business in that region. However, the attempts to bring back to life the drowned workings of the Butovskaya mine abandoned in the end of the XX century proved inexpedient. Development of the coal reserves will begin practically from scratch. A full range of surface facilities including access motorways and local railways and all the neccesary infrastructure will be erected not far from the village. Annual design capacity of the mine is 1.5 million tons. To drill shafts to the coal and extract it in full accordance with the mining science, 1500 new jobs will be created. At the same time, the investor intends to develop the social sphere, which is going to have a beneficial effect on all the inhabitants of the villages in the area. The mine construction plan, prepared presently in the Research Institute Kuzbassgiproshakht, provides for a full range of environmental protection measures such as construction of waste water treatment plants, recultivation of surfaces damaged by mining operations etc. In fact, the land damaged by the old mine will recultivated and returned to agriculture before everything else. Commercial production is scheduled to commence in Quarter 3, 2008 (monthly design capacity is 700 to 750 thousand
Nikitinskaya – Koksovaya mine
The license for the development of the Nikitinskoe coal deposit, located in Leninsk-Kuznetskoe district, has been purchased for 1,240M RUB at an auction in 2005. The mine site will be located 5-6 km away from the town of Leninsk-Kuznetsk. Within the mining lease area, there is a series of 12 thin coal strata, containing the especially rare ‘Zh’ (‘fat’) grade of baking coal. Two coal layers, No 23 and No 26, with the average capacity of 1.3 meters are of especial industrial interest. Mining lease reserves calculated only for such layers are as high as 109 million tons. Moreover, experts’ opinion is that accompanying layers at separate sites can also undergo selective processing. This will considerably extend the prospect of mining works and increase the volume of the reserves available for mining. The coal stratum structure is stable enough with the average inclination amount of 15 degrees. Nowadays, there are contracts on additional geologic research, as well as on the development of the mine project. This year the enterprise plans to start surface works and to obtain exact data about the trapping process, as well as about the work periods. After the first and the second stage of the mine development, its capacity will be as much as 2 million tons of coal per year.
OAO Berezovskaya Central Concentration Mill
Berezovskaya Central Concentration Mill (Berezovskaya CCM) is the next link in the vertically integrated production chain of the holding. It is one of the oldest enterprises of coal industry in Kemerovo Region, founded in 1969. Production area of the enterprise is situated in the town of Berezovsky, 45 km north of Kemerovo.
Main specialization of CCM is processing and concentration of coal for coke chemical production. Today the enterprise surpasses its project capacity, converting 3.6 million tons of raw coal a year.
Technical development of the CCM is carried out systematically. In 2004, financial investments totalled 196,607,000 rubles. A hydrocyclone unit was implemented, which caused a considerable increase in concentration efficiency. Guideline for investments in 2005 was construction of a filter press station. It allowed to make the technology of coal preparation more effective and get additional 34 thousand tons of concentrate every year. New station also provided almost full utilization of production waste, reduction of emission reduction, and will allow to switch to the closed cycle of water supply process in the nearest future.
In 2003, the plant has manufactured 2,702 thousand tons of the concentrate. The headcount was 800; the average salary was 8,463 rubles. The revenue totalled 708,336 thousand rubles, with the net profit of 16,792 thousand. In 2004, the output of the concentrate was as high as 2,771 thousand tons. The number of workers increased up to 841 people; their average salary went up to 8,916 RUB. The revenue totalled 2,274,844 thousand rubles, with the net profit of 116,552 thousand.
ZAO Inertnik
ZAO Inertnik (before June 1996 – Plant for Hydrophobic Inert Dust) is located in Guryevsk, Kemerovo Oblast.
Major consumers of inert dust, which has been produced here since 1968 and provides safe labour conditions for miners, are coalmining enterprises of the Kuzbas (Kuznetsk Basin) region, as well as mines in Sakha Republic and Chukotka Autonomous Region. Their share is more than 70% of the sales market.
The enterprise produces about 40,000 tons of inert dust annually. In 2000, ZAO Inertnik went under control of OAO Koks, and later joined Industrial Metallurgical Holding.
Today Inertnik products enjoy high demand all over the Siberian region. Unique qualities of inert dust allow its application as an environmentally safe material in building, electrotechnical, chemical and agricultural industries. The dust is used not only in mining (stone-dust barriers) but also in road and takeaway construction; in the production of polymers and plastics, paints and varnishes, rolled roofing, linoleum and sheeting felt.
OAO “Koks”
OAO Koks is one of the biggest lump coke manufacturers in Russia. The plant is situated in Kemerovo (Kuzbas). Along with OAO Tulachermet it is the main enterprise of Industrial Metallurgical Holding and actual founder of the company group.
Main products are cupola coke, benzene and coal-tar oil. Productive capacity of the enterprise will reach 3 mln tons of coke a year with the launch of a new set of coke furnaces, which is now under construction. Consumers of coking plant products are leading metallurgical plants of Russia, but, for a series of years, the primary one has been OAO Tulachermet.
OAO Koks, called “Coke plant of Kemerovo” until 1992, was founded in the early 20th century. Today OAO Koks is a modern coke and by-product production plant. It is one of the best enterprises in Russia, which is year by year increasing its manufacture output. The plant is the winner of the “Best Russian Enterprises” award in 2001. In 2002 it won an award at the metallurgical industry contest for “effective use of all resource categories”. OAO Koks is in the rating list of Russia’s 200 biggest companies.
The enterprise constantly modernizes the equipment and constructs new capacities. So, in May 2001 the new coke furnace battery #6 was put into operation. Integrated use of all modern technologies allowed to reduce gas and dust emission, automatize the production process and improve working conditions.
The construction of coke furnace battery #3 with the capacity of 850 thousand tons of coke a year started in 2003. Construction investments will total 1.8 bln rubles. With the commissioning of the complex in December of 2006 the productivity of the enterprise will increase by 40% and surpass 3 mln tons of coke. It is to be the most up-to-date coke furnace battery in Russia with an absolutely new construction design, enabling to produce both furnace and cupola large-sized coke for engineering manufacture.
The problem of environmental impact is also being solved. OAO Koks is the only enterprise in Russia with all the batteries equipped with dustless coke pushing installations. Today the emission levels meet European standards, and will be systematically reduced in the future.
OAO “Tulachermet”
OAO Tulachermet is one of the leading metallurgic enterprises in Russia and the largest exporter of commercial iron in the country, which, according to various sources, takes up as much as 60 – 85% of Russian pig iron sales at the global market. The plant is located 200 kilometres away from Moscow, in Europe’s historic metallurgical centre – the city of Tula, where the first Russian metallurgical plant was set up back in the 17th century.
The enterprise was established in 1935 and was originally called “Novotulsky Metallurgical Plant”. In 1991 it was transformed into the Tulachermet stock company, and in 2002 OAO Tulachermet became a member of OAO Industrial Metallurgical Holding Management Company.
Today the enterprise is one of the industry’s leaders in production and sales growth rates. A vivid example of growth is the fact that in 2003 Tulachermet was the only metallurgical enterprise in Russia with growing production rates.
The average wage rate has tripled. In 2002-2003 the plant was included into the list of 100 Russia’s leading companies. It became a laureate at the 5th All-Russian Contest Best Russian Enterprises in the Dynamic Development category. Today the staff of Tulachermet comprises 5,900 workers.
Tulachermet’s production facilities allow the plant to produce more than 3 million tons of metal products a year. Priority products are foundry pig iron and steelmaking pig iron. Metallurgical and machine-building companies from Western Europe, America and Asia (USA, Japan, Germany, Sweden, Austria, Hungary etc.) are consumers of Tulachermet’s products. The enterprise established itself as a reliable business partner which strictly meets all its contractual obligations.
Other products of the enterprise include crushed stone used to make concrete and asphalt roads, slag, which has no restrictions for production of construction materials, etc. 2003 saw the launch of concrete production at the enterprise, namely edge stone, masonry products of various size, curb and road slabs, buckle plates and other road elements. The technology of recycling blast-furnace waste to use it in production of metallurgic compacts that comprise raw material for pig iron smelting, were highly evaluated by Russian and foreign specialists.
All products made at the plant are notable for high quality and safety. In February 2004 Tulachermet received the International Standard for Quality Management certificate ISO 9001:2000, which proves compliance with international regulations.
The Target Development Program, to be completed in 2010, is being put into effect by the enterprise. In 2004 capital development investments totaled more than 1 billion rubles. A new high-pressure boiler has been built within the framework of the Program. The biggest blast furnace at the enterprise, Furnace #3, has been reconstructed to become one of the most advanced blast furnaces in the world equipped with an effective aspiration system. The Program envisages further modernization and reconstruction of power facilities and blasting furnaces, construction of a new agglomeration plant, and organization of new productions with emphasis laid on steelmaking production - a modern rolling complex producing up to 3 million tons of finished products a year. The construction will start in 2007, and make Tulachermet an integrated iron-and-steel plant.
The goal of the OAO is to transform Tulachermet into a European-level enterprise with large-scale environmentally-friendly manufacture of modern high-quality products and worthy staff wages.
OAO “Polema”
The joint-stock company “Polema” is well known in the world market as the main Russian producer and vendor of refined chrome. The company sells alloy powders and products from chrome, molybdenum and tungsten in the European, Asian and American markets. According to various estimates, five to ten percent of the global market of spray targets for the thin film technology fall to the company’s share. The company started its operation in 1961 as the powder metallurgy workshop (Workshop No. 8) within the framework of an Novotylsky iron and steel works. The goal of the newly-established production facility, constructed with the active assistance of the Central Research Institute for Black Metallurgy, was to cover the industry’s demand for powder titanium, refractory metals and other promising materials for the fast developing aviation and cosmic industries, rocket production, electronics and instrument-making. By 1985, the output volume had risen tenfold. In the meantime, the country’s largest industrial complex for the production of alloy powders had been built and commissioned and production of more than one hundred new product items commenced. The joint-stock company “Polema”, founded in 1992, inherited a unique plant that was holding leading positions in the national powder metallurgy in respect of coating technology, molybdenum and tungsten rolled products, pseudoalloys and contacts for high-voltage vacuum switches. In 2004, “Polema”, together with “Tulachermet”and “Vanady”, joined the single structure of the Holding. At present, it would be quite reasonable to regard “Polema” as Russia’s largest manufacturer of alloy powders, rolled products from refractory metals, filters, pure chrome, crucible furnaces and accessories for growing sapphire monocrystals, spray targets for thin film technologies and other research-intensive products. “Polema” manufactures contacts for over 70% of 10-35 kV vacuum switches produced in Russia. All Russian and Ukrainian engine manufacturers, largest companies in the atomic power, rocket making, oil and gas, electrometallurgy, electronics and chemical sectors use Polema’s unique products. Glassmakers, mineral water and non-alcoholic beverage factories in the CIS and Baltia are well-acquainted with it, too. The 950 ……. can deliver more than 3 thousand tons of powders of pure metals and doped alloys per year. Polema’s production has been certified for conformance to the international quality management standard ISO 9001. The company has been actively modernizing its main areas of production and constructing new facilities. E.g., in 2004, new equipment for the manufacture of large dimension sheets and high-precision plates from molybdenum and tungsten was installed in the plant’s rolling section, new sheet cutting machines were purchased for the mechanical operation section. “Polema” intends to develop and offer to the market new products, such as various types of cladding sheets, unique size chrome targets for LCD screens, targets from chrome, nickel, copper, titanium and other metals applied in electronic engineering. In 2004, around RUR 60 million were invested in the company’s development, and in 2005, more than USD 15 million.
In 2005, the Holding started on a new area of business, non-ferrous metallurgy. Two companies were acquired in the Urals, OAO “Ufaleynickel”in the Chelyabinsk region and PO ZAO “Rezhnicel”in the Yekaterinburg region.
OAO “Ufaleynickel”
OAO “Ufaleynickel”was the first plant to start nickel manufacturing in Russia back in 1933. At present the company produces nickel, cobalt and their oxides. In April 2005, the company was acquired by the “Industrial Metallurgical Holding”. The plant’s annual production capacity is 12,000 tons of metal, it sells to Europe, the USA, China, India and Japan. OAO “Ufaleynickel”
is the only plant in Russia that produces cobalt. Annual output of cobalt, produced on a tolling basis chiefly for OAO Norilsk Nickel, reaches 3,000 tons.
OAO “Ufaleynickel”includes the Serovsky mine, which in addition to its owner, delivers ore to PO ZAO “Rezhnicel”
Serovsky mine
Serovskoe deposit of iron silicate nickel ores is located at the Eastern flank of the Northern Ural in Serovsly district, Sverdlov region. The deposit is represented by six glebes, spaced 3-12 km apart. Since 1985 Ufaleysky nickel mill started to develop the deposit. The laterlog equipment building, the canteen, the POL storage, the boiler room, the overbridge, access railways to the mine, the mine storage, the chemical laboratory, central repair shops have been built and commissioned at the mine site. The ECG-5A excavators have been purchased. By 1.01.2006 the amount industrial category stocks is 32 087 thousand tons of ore (260 thousand tons of nickel). 140 thousand tons are extracted monthly. Serovsky mine also provides ore to ZAO PO Rezhnickel.
ZAO PO Rezhnickel
The nickel plant in the town of Rezh Sverdlov region was built in 1936 for the processing of nickel ore deposits, opened nearby. 1200 people are working at the enterprise. The main production is represented by the smelting of nickel ore in 3 mine kilns, obtaining the nickel matte. Plant capacities allow processing up to 700 thousand tons of ore annually. Besides that the plant has got the electro-thermal workshop, able to process used iron-nickel accumulators and other nickel-containing elements along with granulated iron-nickel and other alloys on the iron-nickel basis.
