Norilsk Nickel approved construction of VS-10 shaft at its Skalisty mine

The Board of Directors of MMC Norilsk Nickel reviewed the progress of a project to expand the Skalisty Mine at the company’s Polar Division and approved a contract with Thyssen Schachtbau GmbH (“Thyssen Schachtbau”) for turnkey construction of mine infrastructure and the VS-10 shaft, at a cost of 381 million euro. Thyssen Schachtbau won an international tender in which leading international and Russian shaft construction operators participated.

Taking into account the importance, scale and tight construction schedule of this project, Norilsk undertook significant efforts in preparing design and construction specifications for the mine, reviewing and evaluating tender proposals, and making the final selection.

Skalisty mines rich and cupreous ore reserves of the Talnakh and Oktyabrskoye deposits in Norilsk Ore District. The VS-10 shaft will be used to lift people and ore from the 980, 1070, 1650 and 1750 meters levels. The shaft will also provide ventilation in the mine to support mining operations.

The major element of the shaft project involves construction of the head frame and hoisting units to be used for the entire term of shaft sinking and subsequent mining operations; this approach differs from a two-stage construction methods that has previously been used in CIS countries (a temporary head frame was used for the initial shaft sinking stage and then later replaced by permanent construction and installed equipment). This method ensures that the time to mine commissioning period is reduced considerably and brings the project in line with Norilsk’s production strategy.

Design work is being carried out in conformance with Russian regulations and construction will begin in June of 2008. The project will be commissioned in December 2015. After the main vents and hoists for personnel are put into operation in 2014, the mine will begin to produce up to an additional 650,000 tons of rich ore for treatment in addition to Skalisty’s mine production of 1.1 million tons of rich and copper ore.

Norilsk Nickel approved the technical specifications for specific equipment based on modern technologies adapted to the arctic conditions of its operations. A team of 140 people dedicated to the project will include at least 100 Russian citizens in order to ensure the transfer of advanced skills and experience in underground mine construction.