OREANDA-NEWS. On 11 February 2009 was announced, that Prime Minister of the Government of Karelia Pavel Chernov had held a working meeting devoted to development of mining complex of the republic. Participants of the meeting have summed up work of the mining enterprises in 2008 and January, 2009.

On results of the last year's work of the mining complex production volume in the branch in comparison with the level of 2007 has made: 106% of road metal production, 105.2% of block stone production and 92.6% of production of iron-ore pellets.

Decrease in iron-ore pellets' production volumes has been caused by problems faced by Karelsky Okatysh, Inc., at year-end in production distribution and 30% iron-ore pellets' price reduction since October. However, as the Minister of Economic Development of the RK Mikhail Yurinov and Minister of Natural Resources of the RK Lev Shustov have assured the Prime Minister, in February the enterprise plans to increase production, and, by results of 2009, to achieve the level of the previous year.

As a whole, the last year's summarized data on production of Karelian road metal for Russian roads and block stone have exceeded the planned. Within a year not only existing enterprises worked steadily, but even new ones have appeared. Upon commissioning the new crushing and screening plant at Golodai Gora Quarry Joint-Stock Company production of road metal has grown 4 times here in comparison with 2007. In Sortavala region the new enterprise Kokkomäki Quarry Joint-Stock Company has produced 454.6 thousand cubic metres of road metal. Production of road metal was started by the new enterprises of Onego Quarries, Ltd., in Prionezhsky region, Prionezhsky Mining Company, Ltd., in Pryazha region, Karelstroinerud, Ltd., in Pitkäranta region, Evrostroigrup-Diabase, Ltd., in Kondopoga region and Granitdomdorstroi, Ltd., in Suojärvi region. The most signoficant production growth in comparison with 2007 was observed at Prionezhsky Gabbro-Diabase, Ltd., (144.5%), Mosavtodor Quarry Administration, Inc., (121.7%), Kara-Tau, Ltd., (157.5%), Black Stone Joint-Stock Company (122%), Tervajärvi Joint-Stock Company (238.4%).

However, meanwhile, on results of January production volumes in the new year remain below forecasted parameters. Reasons of it are related to both financial crisis and high interest on bank credits, and to usual seasonal fluctuations, - Lev Shustov says, - While snow lays on the roads, there is no road construction, and no much need for Karelian road metal. Therefore, there is almost no employment layoffs in the branch, though no enterprise is closed. It is planned that activity in the operation will be observed in February. Not only the existing enterprises intend to restore their former volumes, but new ones will also appear this spring. One of them is a new grinding-sorting factory Metso Minerals, which construction proceeds in Lobskoye-5, Ltd.

Officials in the Government are sure: in February all the mining quarries will work, and by the end of the month of the enterprise will achieve their 100-percent level of production. Another important issue discussed at the meeting was what assistance and to whom should be rendered by the Government. According to the Minister of Natural Resources of the RK Lev Shustov, encouragement enterprises need not only physical, but, first of all, especially at access to moderate-rate bank credits. In this case the Government may act as a sort of a warrantor for the bank community. For this purpose in the Government there has been generated the list of enterprises with strategic value for economy of the republic and development of some territories, among which there are about thirty enterprises of the mining branch.