OREANDA-NEWS. On March 27, 2007 Kovdorsky Ore-Mining Plant, a subsidiary of EuroChem, has won the auction for the exploration and development of magnetite and apatite ore located in deep levels of Kovdor apatite-magnetite deposit. The auction has been held today, on March 27, in Murmansk, reported the press-centre of  EuroChem.
Kovdorsky GOK (KGOK) will be issued a respective license for 20 years. According to the license terms, exploration work should be performed within 4 years, and feasibility study prepared within 5 years from the license issue date. Commercial production should start in 7 years.


The total surface area of the site under the license is 3,136 sq. km, its depth is 350 m to 2,000 m below ground level.
Currently KGOK holds the license for upper beds of the deposit and performs its commercial opencast development. Since the start of the development, over 485 million tonnes of ore have been produced and prepared at ore-preparation plants. The actual elevation of the lower boundary (bottom) of the opencast mine in now minus 140 m.
The apatite concentrate produced by Kovdorsky GOK is the main raw material for all EuroChem enterprises producing phosphate fertilizers – EuroChem – Belorechenskie Minudobrenia, Phosphorit, and Lifosa AB.


The license for deep level exploration of the apatite-magnetite deposit will permit the enterprise to secure a necessary raw material base for a long-term period. According to the KGOK Development Strategy, the opencasting depth of the deposit will reduce to actual elevation minus 635 m to extend the period of the deposit development at a stable production rate of 16 million tonnes of ore per year through to 2039. The complete decay in the project opencast mining rate is expected in 2049.
Beyond 2049, deep-opencast or deep mining will be possible as a part of the respective project. The deposit reserves are enough for it.
Thus, EuroChem enterprises will secure own phosphate raw material for further 40 years.