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Industry

Industrial complex of the Murmansk region

The regional economy is based on extraction and processing of minerals. 220 out of 440 microelements discovered in the 20th century were found on the Kola Peninsula. 

In the Murmansk Region, there are over 60 large deposits of various raw minerals where 30 types of useful minerals are extracted. Most deposits of the minerals are of national significance, and of international significance as far as apatite, nepheline and cyanite ores and rare metals are concerned.

The economic specialisation of the region includes extraction and processing of ferrous and non-ferrous metal ores, industrial production of copper, nickel, cobalt, semi-fabricated precious metals products, primary aluminium and apatite concentrate that is a raw product for phosphate fertilisers.

The share of the Kola land of the total Russian production is 45% in nickel, 11 % iron-ore concentrate and 7% of refined copper. The Region is the only producer of apatite, nepheline and baddeleyite concentrates (100% are produced in the Murmansk Region).

INDUSTRIAL POTENTIAL

Mining and metallurgy complex enterprises are the basis of the Murmansk Region economy.

JSC “Kolskaya GMK” is a single complex for extraction of sulphide copper and JSC ores and production of precious metals.

JSC “Apatit” extracts and processes apatite and nepheline ores of the Khibiny deposits which are part of the largest and richest deposits in the world as well as the basis of phosphorous raw materials in Russia.

JSC “Kovdorsky GOK” develops the Kovdor deposit and produces iron-ore, apatite and baddeleyite concentrates.

JSC “Olkon” extracts banded iron formations and sells high-quality iron-ore concentrate.

“KAZ-SUAL”, a branch of JSC “SUAL” smelts aluminium from aluminium oxide delivered there.

The major production facilities were built decades ago, and the enterprises currently aim at deep-level mining and underground mineral extraction which requires upgrading and expanding the mining industrial infrastructure.

 

PRIORITY INVESTMENT PROJECTS

 

Investment projects for replacement of decreasing yield at the existing deposits and for new regional production types are being currently implemented in the Murmansk Region. These are the projects of building mining and processing plants on the basis of the “Oleniy Ruchei” apatite and nepheline ore deposits, the “Fyodorova Tundra” platinoid deposits and the “Sopcheogorskoye” chromite deposit.

The construction project for the “Oleniy Ruchei” mining and processing plant is prioritised in the North-Western Federal District. A distinctive feature of the new mining and processing plant will be an integrated extraction of useful component from the ore.

The overall investment provides for RUB 30 bln and 3 thousand jobs. The capacity of the facility is one million tonnes of apatite concentrate a year after commissioning the 1st stage of the plant that took place in July last year and increasing the capacity of the processing factory to 2 m tonnes after commissioning the 2nd stage of the plant.

State-of-the-art energy-saving materials are used on the compound of the mining-and-processing plant which makes it possible to improve energy/output ratio in the difficult conditions of the far north. In order to reduce adverse environment impacts, modern waterworks have been built: the enterprise will use a closed water circulation technology to protect bodies of water from contamination. A storage facility for tailings using eco-friendly state-of-the-art pollution control is under construction. Over 60 contractors from various regions of the country are involved in the construction.

The project is being implemented within a public-private partnership including investment in social projects for reconstruction of the school, culture centre and residential buildings in the Koashva settlement in the amount of RUB 30 m.

Coordination board on development of investment and innovative activities in the Murmansk region (established on 05.11.2013) has assigned a strategic and priority status for the investment project «Construction of the ore-dressing and processing enterprise on the base of apatite-nepheline deposit «Oleniy ruchey» and adopted a decision to provide state measures for the project implementation.

On the 18th of November 2013 Governor of the Murmansk region and CJSC «North-West phosphorus company» have signed agreement on state support of the investment activity on the territory of the Murmansk region duringb the implementation of the strategy priority project «Construction of the ore-dressing and processing enterprise on the base of apatite-nepheline deposit «Oleniy ruchey». State support measures concern the tax concession on property, lowered rate on income tax during 5 years.

Industrial development of the apatite and stafellite ore deposit to replace the depleting amount of apatite concentrate is a priority task of the Kovdor mining and processing plant modernisation. The project provides for reconstruction of the existing JSC “Kovdorsky GOK” industrial facilities on the basis of the complex for processing of technological deposit sands and the apatite and baddeleyite factory of the processing complex to build a new processing complex for apatite and stafellite ores.

The project implementation will ensure increased amount of iron-ore, apatite and baddeleyite concentrate production by more than 900 thousand tonnes a year. The amount of processed ores from the main open mine will increase by 2 m tonnes.

On the 18th of November 2013 Governor of the Murmansk region and CJSC «North-West phosphorus company» have signed agreements on state support of the investment activity on the territory of the Murmansk region during the implementation of the strategy priority projects «Modernization of production capacity of the JSC «Kovdorsky GOK»» and «Apatite-staffel ore-dressing complex». State support measures concern the tax concession on property, lowered rate on income tax during 3 years.

All the above mentioned projects suit the performance criteria.

 

Main indexes

Extraction of minerals 

Amount of shipped own production goods, services and works performed with own resources in then-current prices, million RUB                                                       

2011

2012

Extraction of minerals

82722.2

78943,6

Production indexes, % of the previous year

Extraction of minerals

96.6

101.0

Extraction of metals ores

100.5

103.0

Extraction of other minerals

95.0

100.1

Output of main product types

Iron-ore concentrate, thousand tonnes

9913.2

10385.0

Apatite concentrate (100% 25), thousand tonnes

3976

3971

Construction materials not generated from ore, thousand m3

1836.0

2116.7

Production and distribution of electricity, gas and water 

Amount of shipped own production goods, services and works performed with own resources in then-current prices, million RUB

2011

2012

Processing industry

87229.3

96299,1

Production of alimentary goods including beverages, and tobacco

29454.7

29703.0

Metallurgic production and production of metallic end-products

44355.0

41896.5

Production of vehicles and equipment

4623.6

4183.7

Production indexes, % of the previous year

Production indexes, % of the previous year  2011 2012

Processing industry

103.7

95.7

Production of alimentary goods including beverages, and tobacco

97.1

98.1

Metallurgic production and production of metallic end-products

102.6

97.4

Production of vehicles and equipment

102.2

71.5