OUTOTEC OYJ PRESS RELEASE JANUARY 14, 2013 at 11.00 AM
Outotec agrees long-term operation and maintenance contract with ZAO Mikheevsky GOK in Russia
Outotec has agreed a six year-plus service contract with ZAO Mikheevsky GOK, a subsidiary of Russian Copper Company, for the operation and maintenance of the Mikheevsky copper concentrator currently under construction near Chelyabinsk, Russia. The contract value exceeds EUR 140 million, which will be gradually booked in Outotec's order intake starting in 2013, with only a small amount in the first year.
The operation and maintenance contract follows Outotec's earlier EUR 60 million-plus contracts from 2011, which included the process design and engineering for the entire Mikheevsky concentrator and the delivery of the main process equipment for flotation and dewatering, process automation, instrumentation and electrification. Thus the combined value of Outotec deliveries to Mikheevsky will exceed EUR 200 million.
Once operational at the end of 2013, it is planned that the concentrator will treat 18 million tonnes of copper ore annually. The services will be provided by approximately 100 operation and maintenance personnel located at the Mikheevsky site and Outotec's Yekaterinburg and St. Petersburg service centers, supported by Outotec's global organization. Outotec will also supply spare parts, grinding media and reagents for the equipment under its scope of delivery.
In addition, Outotec will provide operation and maintenance management systems for the concentrator, including remote monitoring combined with Outotec Proscon® process automation. This enables efficient plant operation and process optimization for recovery, concentrate grade and reagent consumption. Outotec's maintenance strategy minimizes unplanned downtime and optimizes maintenance costs.
"Over the years we have learnt to trust Outotec's technologies and expertise in metallurgical processes and equipment. With their operational support we can build superior operations together", says Vsevolod V. Levin, President of Russian Copper Company.
"We are very excited about this operation and maintenance service contract with Russian Copper Company, as it demonstrates our strategy to increase the value to our customers through life cycle solutions. Driven by Russian Copper Company's needs, we have designed the entire concentrating process and we have engineered and delivered most of the process equipment. Utilizing our process know-how, we have created the best strategy for operation and maintenance, and we will actually operate the plant with optimal raw materials usage and concentrate production. When Russian Copper Company cooperates with us, their ramp-up to full production will be faster and they will get the best possible return on their investment with minimized environmental impact. The new concentrator operated and maintained by Outotec will produce copper concentrate with low lifetime operating cost", says Pertti Korhonen, President and CEO of Outotec.
For further information please contact:
Kalle Härkki, President - Services business area
Tel. +358 20 529 2901
Eila Paatela, Director - Corporate Communications
Tel. +358 20 529 2004, mobile +358 400 817198