Development of the open pit

2012 — 21 ‘000 t 2013 — 642 ‘000 t 2014 — 891 ‘000 t 2015 — 1,135 ‘000 t 2016 — 1,142 ‘000 t 2017 — 1,167 ‘000 t 2018 — 1,214 ‘000 t 2019 — 1,084 ‘000 t

2017

NWPC completed construction of a railway track for loading apatite concentrate into railway cars directly at the mine site.

As part of stage 2 construction of the beneficiation plant, NWPC commissioned a Ø18m thickener, which increased the recovery factor of apatite concentrate by 0.6%, and a spill wash system. A new terminal for loading apatite concentrate in rail cars was completed and put into pilot operation.

A modern 12,000-tpa permanent plant for manufacturing emulsion explosives was commissioned at the Oleniy Ruchey mine site.

2016

In 2016, the first stage of the Oleniy Ruchey mine reached its design capacity. The mine produced 1.1 million tonnes of apatite concentrate from approximately 4 million tonnes of ore. To mark the event, President Vladimir Putin gave the go-ahead via videoconference for a blast in the Oleniy Ruchey open pit mine and congratulated NWPC personnel on the project’s success.

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NWPC embarked on a priority project to build a railway track for loading apatite concentrate into railway cars directly at the mine site. The goal of the project was to move away from truck transportation of apatite concentrate and make the Company independent of third-party carriers.

NWPC began construction of the main fan and heating unit and continued building declines, ventilation shafts and sublevels, the main underground pumping station with water sumps, and the main underground step-down station at a depth of +100 meters. It also finished sinking tunnels, supporting them with torcrete, concreting floors, and building walls for on-site storage of explosives.

A new draw-in air system and an upgraded dust collecting system were commissioned at the medium and fine crushing facilities as part of stage 2 construction of the beneficiation plant. An advanced chemical agent dosing system was installed and commissioned at the beneficiation plant flotation facility.

NWPC won a tender to extract gravel and sand mix at the Umbozerskoye deposit.

2015

NWPC completed assembly and installation of the beneficiation plant equipment for stage 2, substage 1 (ore dressing facility). More than 500 meters of shafts and galleries were sunk and tunnelled at section 1 of the underground mine, and the auxiliary shaft at underground site No.2 reached a depth of 200 m.

Ten million tonnes of ore have been extracted at the open pit mine since the beginning of construction. The Company completed construction of the open pit mine water drainage system and open pit and underground mine water purification complex.

The Ministry of Industry and Trade of the Russian Federation included NWPC in its list of companies that benefit the Russian economy as a whole and granted it major taxpayer status in Murmansk region.

2014

Mine construction stage 1 was completed. NWPC performed assembly and start-up of the first batch of equipment for stage 2 of the beneficiation plant.

Several main and auxiliary facilities were launched at the Oleniy Ruchey mine site, including the installation and storage area, equipment and material warehouse, gas station, administrative and service centre, boiler house, fuel oil storage, potable water supply facilities, external utility network, sewage treatment plant, fuel oil supply system, steam supply system, motor road, high-voltage power lines to the water intake facilities, transformer substation for the sewage treatment facility and boiler house, tailing dump, and equipment for the analytical control automated laboratory system.

NWPC started sinking the mine service shaft for hoisting men, materials, and equipment, as well as fresh air supply and dewatering of the underground mine.

The beneficiation plant produced its first million tonnes of apatite concentrate.

Production reached the design capacity of over 90,000 tonnes of apatite concentrate per month.

2013

In 2013, NWPC continued designing and building the mine’s second stage and tested its ore processing and apatite concentrate production technology. The Company completed the first large-scale scheduled preventive maintenance of all facilities, services and workshops for the beneficiation plant under construction.

The environmental control and production control laboratories were commissioned.

Over 30,000 tonnes of apatite concentrate were sent to Acron Group’s production facilities.

NWPC signed an agreement with the Murmansk Region Government to assign the Oleniy Ruchey mine regional strategic investment project status.

NWPC founded its primary trade union organisation.

2012

NWPC commissioned the Oleniy Ruchey open pit mine and finished the first phase of construction of the beneficiation plant, infrastructure, and the temporary transhipment terminal at Titan railway station. Start-up work was completed for all operational facilities of the mine, and construction and assembly were underway.

Special attention was paid to site improvement, which included planting of trees and lawns and preparing on-site walkways. In August, a food production facility was opened at the Oleniy Ruchey mine site. As part of the start-up operations, the Company produced a pilot batch of approximately 20,000 tonnes of apatite concentrate, which was sent to Acron’s production site. The one-millionth tonne of ore was mined at the Oleniy Ruchey open pit mine.

The Oleniy Ruchey mine construction project was included in the Social and Economic Development Strategy for North-western Russia through 2020. The Strategy stated that creating a new plant at the Oleniy Ruchey apatite-nepheline ore deposit would have a considerable impact on the North-western Federal District. NWPC also received the Russian Mining Excellence Award in the Project of the Year category.

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