2011-01-25

On March 23, China National Electric Equipment Corporation ( CNEEC ) together with Industrial and Commercial Bank of China ( ICBC ) signed with ARICOM Corporation of Russia the financing and EPC cooperation agreement for the construction of Kimkan, Sutara and Garinskoye ( KSG ) Iron Ore Mining Project in the Far East region of Russia. This was one of the documents signed between China and Russia for the cooperation in the areas of the economy, technology and people exchanges during the recent visit made by H.E.Xi Jinping, member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China and vice president of the People 's Republic of China. It was also the first general contracting project signed between SINOMACH and Russia, which received high attention of both governments of China and Russia. According to the agreement, CNEEC would act as the general contractor for the project and ICBC would be responsible for the financing arrangement of Phase 1 of KSG lron Ore Mining project.

The total investment for the KSG Iron ore Construction and Development project would amount to 2 billion U.S.dollars and the project would be built in three phases . Phase 1 of the construction of Kimkan Mine would include the new build of 2x50MW in-house power plants,the annual production of 10 million tons of iron ores and the output of 3.22 million tons of 65% grade iron ore concentrates. Phase 2 construction of Garinskoye Mine would include the extention of dressing plant and the further increase of the annual production up to 8.30 million tons of iron ore concentrates in 65 % grade. Phase 3 construction of Sutara Mine would include the construction of the DRI plant with the annual production of 2.5 million tons of sponge irons and the extension of 2x50 MW in-house power plant．