??? Severstal ('Severstal', 'the Company'), one of the
world's leading steel and steel related mining companies,
announces that it will invest approximately $98 million in
geological exploration for iron ore and coal projects both
in Russia and internationally in 2012.
The investments will focus on continuing existing mining
operations and expanding the resource bases at Severstal's
Vorkutaugol, Olcon and Karelsky Okatysh mines, as well as
geological studies of perspective domestic and
international greenfield projects.
More than RUR 223 million will be invested in exploration
projects in Russia, nearly 2.5 times more than in 2011.
Work is well underway to increase the mineral resources at
Olcon in the Murmansk Region including developing the new
Northern Iron Ore District project in the Chudzyavr and
Pinkelyavr fields. In Karelsky Okatysh, exploration
in 2012 will be primarily focused on the South Korpangsky
area as well as continued supplementary exploration of the
Approximately RUR 100 million will be invested in the
exploration of Coal Plot N1 at the Usinsky deposit in the
Komi Republic and more than RUR 400 million will be
invested in the exploration of the Tsentralnoye (Central)
deposit in Tuva in 2012, a significant increase on the
approximately RUR 204 million invested in 2011.
Work will continue on the Company's iron ore greenfield
projects in Liberia and Brazil. A targeted investment of
$66 million is planned in 2012 for the Putu iron ore
project in Liberia, more than double the investment of the
previous year. A preliminary feasibility study of the
project is to be completed by mid-2012, with drilling
volumes ramping up thereafter. A targeted investment of
$6.4 million is planned for the Amapa iron ore project in
Brazil in 2012 (up from $800 thou in 2011), including the
completion of a scoping study.