【Ferro-alloys.com】: By 2027, Kazakhstan plans to launch a large-scale Lomonosovske iron ore project (Lomo) with reserves of 74 million tons of iron ore concentrate with an Fe content of over 67%. Production is expected to last 20 years. This was stated by the CEO of Kazax Minerals Inc. Mohamad Shafiq at the Mining Show in Dubai, UAE, Kallanish reports.

Located in the northern part of Kazakhstan, in the Kostanay region, Lomo is about 15 km northwest of the city of Rudny. The resource base of the project includes two main deposits – North-Western and Central, with total proven reserves of 507 million tons, according to JORC and KAZRC standards.

The project has received all necessary permits from local and central authorities. The work program was submitted to the Ministry on September 4, and its approval is expected in December-February. Work has already begun on drainage at the site.

Lomonosovske is positioned as a supplier of raw materials for the green steel sector, contributing to the decarbonization of steel supply chains. However, the project is facing challenges, including difficulties with financing and managing stripping operations. The layer of rock covering the ore is about 80 meters thick, which requires large-scale excavation. The extraction process involves two stages: the initial one is to a depth of 600 meters, and in 20 years, mining will continue at deeper levels.

To overcome these challenges, Lomo has already signed supply contracts with several steel companies and is in talks with engineering, procurement and construction management contractors.

Lomo’s proximity to major customers is an additional advantage. For example, Qarmet is 800 km away, Baosteel (Xinjiang Yili) and Sougang (Yili Xinjiang) are about 2227 km and 2230 km away, respectively. The Swiss company Glencore is also mentioned as a potential consumer.

The global iron ore concentrate market is experiencing a growing demand for high iron ore due to decarbonization and technological changes in mining and enrichment. The market for high-grade concentrate is forecast to grow by 7.1% annually from 2024 to 2030, making Lomo an important player in this area.

In 2023, Kazakhstan increased steel production by 16.4% year-on-year – to 3.92 million tons. In the same period, flat products production fell by 3.6% year-on-year – to 2.45 million tons.

Kazakhstan’s Qarmet Iron and Steel Works increased steel production by 14% in 9M2024 compared to the same period in 2023, to 2.6 million tons.

In total, the company plans to increase steel production in 2024 to 3.5 million tons compared to 2.9 million tons in 2023, and iron ore concentrate production by 10% – to 10 million tons. At the same time, coal production is expected to decline by 2%.

The Kazakhstani investor has pledged to invest another $3 billion in modernizing production and protecting the region’s environment, with $1.3 billion planned to be invested in 2024.

• [Editor:Alakay]