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Economic development of the Republic of Karelia in 2005

  Results of 2005

  Economic Policy

  Productive Industry

    Timber Industry Complex

    Mining Complex


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Status of Productive Industry
Mining Complex

Mining Operations

The mining complex of Karelia develops according to the current republican program Development of Bowels and Development of the Mining Complex of the Republic of Karelia in 2000-2002-2010.

The Government of Karelia annually considers results of performance of the given Program, there are developed measures directed on support of those directions which will really allow to increase efficiency of use of bowels and improve social and economic situation in districts focused on implementation of perspective investment projects.

Extraction of minerals in the territory of the republic is carried out by 47 enterprises making a basis of the mining complex of Karelia.

Karelsky Okatysh (Karelia Iron-Ore Pellets), Inc., is a unique enterprise which is carrying out extraction of metal (iron) ores for production of iron-ore pellets. The enterprise works and develops successfully, using its capacities effectively. Since 2003 Karelsky Okatysh, Inc., introduced operating mode run without loss, in 2005 the overwhelming part of the profit tax in the budget of the republic was received from this enterprise. Last year for expansion of the mineral base of the enterprise Kostomuksha Ore Mining and Processing Enterprise continued to prepare for development of Korpagangsky iron-ore deposit (removing the overburden).

Volume of production of iron-ore pellets in 2005 has made 8,8 million tons and has increased 1.3 times in comparison with 2001.

Volume of realization of production in money terms to parameters of 2001 has grown 4.7 times and, on preliminary data, in 2005 has made 18,2 billion rbl. Regrding "Extraction of Other Minerals" form of economic activity in 2005 volume of production of nonmetallic building materials in the republic has made 7,6 million cubic meters, including 5,9 million cubic meters of road metal, 18 thousand cubic meters of block stones, growth to the standard of 2001 has made 48%, 24% and 59% correspondingly.

Leaders of road metal production in 2005 became: Prionezhsky Quarry, Ltd., Sychevsky Industrial Complex, Ltd. (on the basis of Sortavalsky Grinding-Sorting Factory, Inc., Pitkäranta Quarry Administration State Unitary Enterprise, Karelprirodresurs, Ltd., Mosavtodor, Ltd. State Unitary Enterprise, Shokshinsky Quarry, Ltd.; in extraction of block stone the leaders are Karelid Close Corporation, Drugaya Reka Close Corporation, Interkamen Close Corporation, Kara-Tau Close Corporation.

The volume of realization of nonmetallic materials in money terms in 2005 has made more than 2 billion roubles, or 198% to the standard of 2001. The share of the given segment in industrial production of republic makes about 2%.

Within the period from 2004 to 2005 a number of large modern complexes producing road metal and gravel has been put into operation in Karelia - these are again created factories Karelprirodresurs, Ltd., (Raikonkoski Quarry), Lobskoye-5, Ltd., and Prionezhsky Gabbro-Diabase, Ltd., ("Zheleznaya Gora" deposit), and also stationary factories of Sortavalsky Grinding-Sorting Factory, Inc., and Pudozh Quarry, Ltd., were mounted during reconstruction of own outmoded and obsolete facilities.

Investment projects and business-plans of the mountain enterprises of the republic implemented at the moment allow to make optimistic estimations of immediate prospects of this direction of the mining complex development.

Metallurgical Production and Production of Finished Metal Articles

This kind of activity in Karelia is represented by Wärtsilä Hardware Plant Close Corporation and Nadvoitsky Aluminium Factory (Branch of NAZ-SUAL).

Wärtsilä Hardware Plant Close Corporation is a part of a large industrially-financial association of Mechel Steel Group, Inc., holding, which includes enterprises of Kuznetsk Basin coal branch, the big metallurgy of the Ural Mountains, trading and insurance companies. In 2002-2005 the enterprise worked stably, increasing industrial parameters, volume of hardware production in 2005 has made 55,2 thousand tons, that makes 177% to the standard of 2002.

In the sector of nonferrous metallurgy in Karelia there operates Nadvoitsky Aluminium Factory (Branch of NAZ-SUAL) using 100% of capacities. The enterprise is under reconstruction which will allow to lower some aluminium production expenses, and to increase production volumes both in physical, and in money terms. Position of the factory in the course of years of time is estimated as stable. On results of 2005 the volume of production has made 101.9% to parameters of 2004 and 107.5 % to the standard of 2001.

Technical support
Created: April 10, 2006. Last updated: May 8, 2006.
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