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Economic development of the Republic of Karelia in 2007

  Economic Policy

  Industrial Policy

    Industrial Policy

    Timber Industry

    Subsurface Use

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    Agroindustrial Complex

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   Results of 2007

Mining complex

Economic policy in the field of mining complex of the republic development was carried out according to operating Development of the Bowels and Mining Complex of the Republic of Karelia for 2000-2002-2010 republican target program .

In 2007 Government of the Republic of Karelia within the framework of its powers consistently completed tasks of government regulation of relations in the sphere of subsurface use, reproduction of mineral resources base, development of mining and metallurgical complex.

Work on licensing of use of bowels, monitoring of performance of conditions by subsurface users proceeded. In 2007 133 licenses were isued on all kinds of minerals. By results of monitoring 81 decisions on preschedule termination of the right to use bowels were made. Sixty two subsurface users were forwarded notices on the possible preschedule termination of the right to use bowels, in case they do not improve the situation. On 53 licenses changes have been made to conditions of use of bowels.

With a view of perfection of regulation of relations in the sphere of subsurface use, the Law of the Republic of Karelia On Some Issues of Subsurface Use in Territory of the Republic of Karelia is prepared and passed in accordance with the established procedure, according to which the right to use bowels can be given exclusively by results of competition (auction).

For execution of this Law normative legal certificates of the Government of the Republic of Karelia were accepted, more detailed information about which is presented in section 4.6 of this Report.

With the purpose of involving new deposits of minerals in operation and also for more complete and rational development of their balance stocks in the republic the Mineral Resources subprogram of the Ecology and Natural Resources of the Republic of Karelia for 2004-2010 republican target program is realized. During realization of the program actions in 2007 forecast maps of widespread minerals in Pitkäranta, Lahdenpohja, Prionezhsky, Pryazhinsky, Medvezhiegorsk, Kondopoga, Louhi and Kem regions were made. Aspects of search and evaluation of deposits of facing and semi-precious stones with high consumer properties were considered. Evaluation of resource potential of deposits of Tchupa-Louhi group with the purpose of definition of expediency of mica-muscovite extraction renewal and opportunity of multi-purpose use of rocks composing slag-heaps of these deposits was held; search of deposits of underground waters was conducted; nonconventional kinds of mineral raw material and prospect of their industrial development were investigated.

In 2007 mining complex of the republic developed rather intensively.

Karelsky Okatysh, Inc., for maintenance of capacity of the open-cast mine and restoration of mineral resources base has begun realization of investment project of development of Korpangsky deposit of iron ores which stocks are estimated to make 320 million tons of iron ore.

In March, 2007 on Korpangsky deposit the first ton of iron ore has been extracted. As a result, on results of year the combine managed to achieve the maximal from the beginning of the start of the enterprise volume of pelletizing - more than 10 million tons. With a view of improvement of quality of its production, decrease in production costs and improvement of working conditions, modernisation of the enterprise is held.

Growth of extraction of minerals in 2007 was appreciably provided with creation of enterprises producing ballast stone, extraction and processing of block stone.

Within the scope of realization of decisions of the Protocol signed by Head of the Republic of Karelia and chief of Octyabrskaya railway - branch of Russian Railroads, Inc., work on involvement of investments for development of bowels lengthways low-density line of Suojarvi-Juškozero piece of line proceeded.

In Suojarvi region enterprise of Karelprirodresurs, Ltd., on the second open-cast mine of Leppäsyrja put into operation modern ballast stone production complex. On results of the year on 2 open-cast mines it has been produced more than 2 million cubic metres of ballast stone, that is 2.6 times more, than in the similar period of 2006. In December, 2007 Sortavala Grinding-Sorting Plant, Inc., produced the millionth from the beginning of year cubic metre of ballast stone.

In Kondopoga region Diabase Industrial Group, Ltd., has started construction of grinding-sorting complex for production of ballast stone on Keppäselgsky deposit. In 2008 commissioning of two grinding-sorting plants in Muezersky region is planned - Sever-Stroi, Ltd., and Petro-Granit, Ltd.

By 2010 it is planned to achieve production of 15 million cubic meters of ballast stone a year, and by 2015 - 30 million cubic meters. However, to achieve these parameters corresponding development of railway and power infrastructure is required.

Positive tendencies were recently observed in extraction and processing of block stone. Many enterprises of this segment of the mining complex have improved their financial position and have started stage-by-stage introduction new high-efficiency mining stone-working equipment and new technologies.

Stone-working shops are being created at operating open-cast mines of block stone, that is enterprises switch from simple extraction of pieces of blocks to their processing.

Block stone for memorial products is demanded steadily in the market. In 2007 the share of black stone in total amount of extracted block stone in the republic has exceeded 90%. At the same time, there are opportunities to increase production of facing products made of Karelian stone

It is expected, that positive dynamics of annual growth of volumes of block stone extraction at the level of 115-120% will be kept in intermediate term prospect.

In 2007 the opportunity of realization of the project on development of deposits of chromic ores, silicate nickel, titaniferous magnetite deposits in Pudozh region on the basis of government-private partnership was studied.

In 2008 in the field of mining complex development the following tasks will be completed:

  • further perfection of legislative base of republic in the field of subsurface use;
  • acceptance of the Order of granting rights to use bowels with a view of investigation and extraction of widespread minerals;
  • work in the field of geological studying and reproduction of mineral resources base of the Republic of Karelia;
  • formation of the Program of licensing of using sites of bowels for investigation and extraction of widespread minerals in territory of the Republic of Karelia;
  • maintenance of effective control over performance of conditions of using bowels by subsurface users;
  • continuation of cooperation with Oktyabrskaya railway and power engineering specialists to provide conditions of activity for mining enterprises;
  • commissioning of no less than three mining enterprises.
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Created: March 24, 2008. Last updated: April 22, 2008.
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