Industry in the region

Murmansk Region is one of the most developed mining regions of Russia. In subsoil of the Kola Peninsula there are large-scale deposits of chemical, copper-nickel, iron ore raw materials, precious and rare metals, rare-earth elements. Stocks of nonmetallic raw materials - vermiculite, phlogopite, white mica, pegmatite, amazonite, fluorite and others are considerable. The Kola earth is rich in chrome, titan, raw materials for production of construction materials and firebrick, facing stone, semiprecious and ornamental stones.

Stocks of the majority of minerals on the Kola earth have all-Russian, and apatite and nepheline, cyanite ores, rare metals stocks - the world value. Investigation and development of the subsoil of the Kola Peninsula led to creation of a powerful mining complex which includes a part of mining and chemical industry enterprises, nonferrous and ferrous metallurgy, industries of construction materials specializing in production and primary processing of raw materials into semi-finished products (mineral concentrates).

The Kola mining complex has extreme economic and social importance for Murmansk Region, plays a significant role in the economy of Northwest and Russia as a whole, it is integrated into the world economic communications. For this reason Government of the region considers ensuring of a steady work and effective development of the mining complex one of the main tasks in long-term prospect.

Development of crude-ore resources and considerable capital investments into construction of new capacities for ore production instead of decommissioned "Apatit" JSC, production of concentrates on "Oleniy Ruchey" MEC, working off of fields on Kovdorsky massif  by surface mining in "Kovdorsky MEC" JSC will allow to increase production of apatite, nepheline and iron ore concentrates in the short term. Further growth in extracting production can be reached at the expense of production increase as a result of research of the possibility of pit reserves working off near edge zones of Nyorkpakhksky field by surface mining on "Apatit" JSC , reconstruction of capacities of crushing factory and concentrating complex of Kovdorsky MEC, operation of "Northwest Phosphoric Company" JSC objects , and also modernization of "Lovozersky" MEC production,  focused on the  significant price increase and an increasing demand for loparite concentrate in our country and abroad. "Kolskaya MMC" plans to implement projects aimed at development of mineral resources of the company, for continuous completion of decommissioned capacities and maintenance of the reached parameters of nickel ore production at the level of 52-53 thousand tons a year.

Further, projects of the company development will be directed generally on maintenance of the reached production level, instead of increase of metals production in finished goods. In the short term decrease of nickel and copper production on decommissioned fields - Polar, Semiletka and Kotselvaar in "KGMK" JSC is possible. Today in "KGMK" JSC  "Cobalt Production of the capacity of 3000 tons a year" project is at a stage of implementation which will allow to launch an effective and competitive production of electrolytic cobalt by purity of 99,8% on the Monchegorsk platform  and will provide increase of cobalt production.

Effective use of raw, personnel and technological capacity of the region requires formation of production clusters including existing and a number of new hi-tech mining and metallurgical and chemical corporations, focused on satisfaction of the national demand for strategic and extremely scarce materials, production of which requires not only raw materials production, but also their deep processing. However increase of "Severny" mine capacity will provide increase  of metals production, including aluminum (taking into account growth of aluminum consumption in the USA, Japan, Germany and on the domestic market).

The most serious problem of subsurface use of Murmansk Region recently is exhaustion of mineral resources of the mining complex by traditional types of raw materials (copper-nickel, apatite and iron ores) and essential decrease of levels and rates of its reproduction. Highly profitable subsurface part of the majority of large-scale and unique deposits of traditional types of raw materials was almost mined-out during long-term intensive operation. Due to the transition to deep horizons working off and underground mining of mineral resources direct production costs and capital investments increase, but the tendency to deterioration of extracted ores keeps and conditions of their development become complicated. All these lead to decrease of production profitability, rise of the price for ready-made products of the enterprises and, as a result, to competitiveness loss on the internal and external markets. The main problems of the enterprises of mining and metallurgical complexes development consist of the following:

  1. decrease of stocks suitable for surface mining, transition to underground extraction on deeper horizons leads to essential increase of price and reduction of ore production volumes;
  2. deterioration of ores;
  3. complexity of the reached production volume maintenance and export of expensive and most demanded non-ferrous metals on the world market;
  4. insufficient level of complex use of extractable multi-component raw materials, especially apatite and nepheline;
  5. imperfection of traditional methodology of economic efficiency assessment of natural and technogenic mineral raw materials complex use, interfering the positive solution of the problem;
  6. insufficient depth of raw materials processing, need of goods production with higher value added;
  7. high and increasing environment load in the locations of operating and designed enterprises in the long term;
  8. high level of business assets wear  at the operating enterprises.

In 2012 the share of shipped products, performed works and services by own forces of the GPK enterprises made 34,7% in the economy of Murmansk Region and 0,9% on the market of the Russian Federation.

Extracting production in the region is represented by:

  • "Kovdorsky MEC"JSC (complex processing of mineral raw materials and production of three commodity concentrates:  iron ore, apatite and baddeleyite,
  • "Olenegorsky MEC" JSC  (iron ore concentrate and high-quality construction crushed stone,
  • Apatit JSC (development of Hibinsky fields of apatite-nepheline ores, their production and enrichment, production of phosphatic raw materials for mineral fertilizers, apatite and nepheline concentrate),
  • "Lovozersky MEC" JSC (production and processing the loparite ores with obtaining of loparite concentrate – raw materials for production of rare-metal and rare-earth products),
  • "Kovdorslyuda" JSC (development and enrichment of a unique Kovdorsky field of micas – pegmatite, phlogopite and vermiculite),
  • "Northwestern Phosphoric Company" JSC (production of apatite, and then nepheline concentrate) since 2012.

In the structure of processing production the most significant share belongs to nonferrous metallurgy. "Nonferrous metallurgy" branch includes the largest enterprise of Murmansk Region - "Kolskaya Mining and Metallurgical Company" JSC.

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Marina Kovtun

The governor of the Murmansk region

+7 (8152) 486-201

News

22.06.2017  17:33

Murmansk Region confirms the status of the region with favorable conditions for business development

Today, the Governor Marina Kovtun held a meeting of the Council on improving the investment climate in the Murmansk Region. The Head of the region recalled that in the National Investment Climate Rating for the constituent entities of the Russian Federation in 2016, the Murmansk Region rose by 20 points, improving its position to the 32nd place. For the third consecutive year, the region is included in the third group of regions, confirming the status of the region with favorable conditions for business development.

21.06.2017  17:35

Union of Industrialists and Entrepreneurs of the Murmansk Region holds a meeting with representatives of the business community of municipal entities of the town of Apatity and the town of Kirovsk

On June 23, 2017, in the Kolenergo Central electrical networks (2A Festivalnaya Street, the town of Apatity, the Murmansk Region), the Union of Industrialists and Entrepreneurs of the Murmansk Region (Regional Association of Employers) will meet with representatives of the business community of the municipal entities of the town of Apatity and the town of Kirovsk.

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Ministry of Industry and Enterprise Development of the Murmansk region

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