Director General, Management Company of Industrial Metallurgical Holding LLC,
Chairman of Board of Directors, Ufaleinickel plc.
Dear colleagues and friends,
Let me introduce the Urals industrial group of nonferrous-metals businesses, namely Ufaleinickel plc and Rezhnickel Production Co. which in 2005 were integrated to form a structure of an industrial metallurgical holding company.
Industrial Metallurgical Holding LLC as a management company is entrusted to control more than fifteen works located in Siberia and Ural, as well as in the European part of our country. Our holding company is a vertically integrated structure of relevant businesses technologically related with each other. Our company runs mining and cleaning operations at underground and opencast coal mines of COKE Group plc in Kuzbass to produce coke that we are drastically in need of for metallurgical industry. As to our businesses in Europe, such companies as Tulachermet plc, Vanadium–Tula plc, and Polema plc produce cast iron, ferrovanadium, chrome, and metallurgical powder products. Whereas, here in Ural such companies as Ufaleinickel plc and Rezhnickel Production Co. Ltd jointly produce nickel, nickel oxide and cobalt.
We strive to focus our activities on enhancement of productive efficiency at every enterprise under the holding company control, additionally, we are actively involved and concerned in social programs and environmental safety. Wages paid at the above mentioned works are reported to be the highest as compared with the others in their cities. We take part in social programs intended for demolishing shabby old houses; our holding company supports the church, sport and veterans. The company takes upon themselves social commitments to support areas, cities and regions where our employees live in. Our business is transparent, the company is known to promptly pay due taxes. We are optimistic that tomorrow’s future will bring stability and sustainability for our businesses, as to Russia we believe in real improvement in qualities of life of its citizens.
2. Pioneer of the Russian nickel industry – Ufaleinickel plc. Milestones in the history of the company…
1907 – Discovery of nickel ore deposits in Verkhny Ufalei region.
1928 – Beginning of design development to launch a nickel plant. The first project developed by Krupp Co., Germany.
1.08.1931 – laying of foundation for production floors.
2.08.1933 – The first matte smelting. The date of putting the plant into operation.
4.11.1933 – The first output of nickel from an electric furnace (600kg, 90,02% Ni content).
01.05.1937 – metallic cobalt reported to be output at the works for the first time in the history of the Soviet nonferrous-metals metallurgy.
1940 – start of exporting Ni elsewhere abroad.
1966 – For the first time in the nonferrous-metals industry evaporative cooling of a shaft kiln was implemented.
1965 – installation of a large-scale “boiling bed” furnace in a roasting plant (technological process development for Bessemer matte to be roasted in a boiling-bed furnace).
11.01.1971 – Ufalei nickel works was awarded Order of the October Revolution following Decree #98 6-У111 released by Presidium of the Supreme Soviet of the USSR.
14.12.1992 – pursuant to the privatization process Ufalei nickel works was altered into Ufaleinickel plc.
01.04.2005 – integrating of Ufaleinickel plc into a management company, Industrial and Metallurgical Group LLC.
3. Ufaleinickel public limited company enjoys reputation of the largest manufacturer of nickel in Russia; the company is proved to be the second largest supplier of metallic nickel on the domestic market. Its share of nickel output amounts to 15% and 1% of overall Russia’s and world output of nickel, respectively. Ufaleinickel plc was the first business in this country to produce nickel, as well as the first large-scale pilot plant for developing new technological processes for production both nickel and cobalt.
Nowadays, it is known as a complex business comprising a full technological cycle, starting with mining operations and ending in output of nickel products. Thanks to its state-of-the-art production facilities, the company is capable to annually produce up to 15000 tons of metal.
The company supplies its products to customers throughout the territory of the Russian Federation. Also, nickel from Ufalei is largely exported to the European countries, USA, China, India and Japan.
Today, due to the progress in technical refinement of production facilities the company is capable to improve the products quality. Both nickel and cobalt from Ufalei enjoy a steady demand on the international market.
4 Integrating of Ufaleinickel plc into the structure of Industrial and Metallurgical Holding Company proved to facilitate the positive dynamics of its business. Thus, during 2005 production output was observed to increase from month to month, and this increase suggests the evidence of some positively steady and efficient performance of the entire company’s personnel.
In 2005 output of nickel increased by 100% as compared to that one in 2004, whereas, wages were raised by 34%; the number of employees increased by 14%.
In 2006 capital investments into production facilities are expected to increase twice as much as compared to capital investments in 2005.
Environmental safety is declared the primary purpose by Ufaleinickel plc. The company is always aiming at consistent reducing of a man-caused impact on the environment; it is now collaborating with the advanced research institutes in pursue of developing new industrial emissions control techniques.
The company is aimed to achieve European industrial standards which will allow to change Ufaleinickel plc into an enterprise with intensive, environmentally sound production facilities, capable to produce high quality products and provide adequate wages to its personnel.
Great productivity, performance and financial results obtained by the company in 2005 under the conditions of advancing economic sustainability suggest optimistic prospects for the future. It can be concluded that Ufaleinickel managed to maintain stability of production process, it is obviously making progress, and finally, material welfare and prosperity of Ufalei citizen are directly dependable on the company’s success.
5 Serov nickel ore mine – the major source of raw material for Ufaleinickel plc.
Serov nickel ore mine, Serov, Sverdlovsk Region, is known to be a production subdivision of Ufaleinickel plc, and a major source of raw materials.
Serov mine runs mining operations on Serov silicate and nickel ores deposit. Ni content in the mined ores averages 1-1,5 %.
Large scale mining operations at the site began in 1985. By 1998 mining operations reached their planned production capacity and ores output amounted to 1400 thousand tons a year. Today, mining output has exceeded the planned capacity of operations at the site by 17%.
The results of geological surveying of Serov deposits suggest inviting and favorable forecasts as regards availability of nickel ores reserves for the period of 60-65 years of continuous mining operations to be run by Ufaleinickel plc provided that the average annual output of nickel will be maintained as 15000 tons.
Cheremshansk quarry is one of the oldest subdivisions of Ufaleinickel company, and nowadays it is viewed as a large production unit, comprising marble and quartzite quarries which are capable to fully satisfy the company’s needs in flux (additives to be used in metallurgical treatment of silicate and nickel ores).
REZHNICKEL Co. Ltd
Rezhnickel Co. runs operations of incomplete technological cycle, yet it is related to Ufaleinickel plc through united technological flow scheme. Nickel ores from Serov ore mine are supplied to Rezhnickel Co. to be treated into semi-finished products (nickel matte) which is further supplied to Ufaleinickel plc facility, whereat granulated nickel is produced.
Beginning from September, 2005 granulated nickel is re-smelted into nickel ingots at the operations site of Rezhnickel Co.
6 Nickel technological process flow illustrated with photos taken at each technological stage.
Smelter of Ufaleinickel plc.
Serov nickel ore mine of Ufaleinickel plc.
smelter of Rezhnickel Production Co. Ltd
Roasting plant of Ufaleinickel plc
Ufaleinickel plc, granulated Ni N-3
Nickel in granules
Rezhnickel production Co. Ltd, Ni N-3 ingots
Primary nickel (Ni), GOST 849-97
Chemical content, %.
Both Ufaleinickel plc and Rezhnickel Production Co. Ltd supply their clients with grade N-3 nickel products either in the form of granules (end product of Ufaleinickel production facility, Verkhny Ufalei) or in ingots (end product of Rezhnickel Production Co. Ltd, Rezh). The products meet the requirements of international standards.
As to ingots, they are supplied in capron containers of «big bag» type, specific containers type СК-3–1,5.
All batches of granules are packed in capron containers of «big bag» type, metal drums fixed onto pallets, special containers type СК-3–1,5.
When otherwise agreed with a customer, nickel products are may be packed in alternative containers with similar strength and safety characteristics in order to keep the products harmless, besides they must be manufactured to comply with the currently applicable transport regulations set out forth by Transportation Ministry.
Nickel oxide (Ni O), GOST 17607-72
Chemical content, %.
NiO produced at the operations site of Ufaleinickel plc meets the requirements of GOST 17607–72.
The end product is packed into capron containers «big bag»type;
Three-five layer paper bags in conformity with the requirements of GOST 2226–75, which then shall be placed inside either polyethylene or flax-jute-kenaf bags made from viscose threads.
NiO products are assumed to be transported by any transport vehicles in conformity with cargoes transport regulations suitably applicable with the type of transport means employed.
Ufaleinickel plc. owns a technological process line for treatment of cobalt containing raw material at its production facilities. Due to this technological line Ufaleinickel plc. is known to produce metallic cobalt of the highest grades (К-1Ау, 99,35 % Co content ). The company fails its own source of raw material, therefore, we are looking forward to business cooperation in both purchase and processing of cobalt-containing raw made on commission.