State of the Material Production Branches
Mining Complex

The mining complex is perspective and quite intensively developing line of economy of the republic. Work of the Government on development of the mining complex was carried out according to the target republican program.

The mining complex occupies the second position in the republic on the volume of produced commodity output. More than 30 working mountain enterprises, and approximately as much is in the stage of becoming make production in the republic. The basic share of manufacture belongs to 15 enterprises: Open Society "Karelsky Okatysh", Open Society " Karelnerud ", the state unitary enterprise "Mosavtodor", the state unitary enterprise "Pitkarantskoe Karieroupravlenie", Open Society "Shokshinsky karier", Open Society "Karelsky granit", Open Society "Voshod", Joint-Stock Company "Kashina gora", Joint-Stock Company "Karelid", Joint-Stock Company "Interkamen", Open Society "Granit", Joint-Stock Company "Chupinsky Ore Dressing Industrial Complex", Open Society "Porfirit", Open Company NPK "Karbon-Shungit", Open Society "Ruskealsky Mramor".

In the republic there work 188 entrails-users, to which 495 licenses is given, 387 from them are on the prevailing minerals. Annually 120-130 new objects of entrails-using is put into exploitation in the Republic of Karelia.

The performance of the basic planned targets of the Program of studying of entrails and reproduction of the mineral-raw-material base in the Republic of Karelia of 2001 is provided in order to mainten steady rates of growth of production in the mining complex.

In 2001 manufacture of building rubble by the enterprises of the mining complex in comparison with 2000 has increased by 17% (among all enterprises) and has comprised 5.5 million cubic meters. On the large and average enterprises the volume of manufacture has grown by 3.6%.

Significant growth of manufacture has been achieved in Prionezhsky, Pudozhsky regions, Vepps national volost, towns of Sortavala and Kostomuksha. At the same time, some enterprises of the branch have lowered their outputs. The greatest curtailment of production had been allowed at the Joint-Stock Company "Kondopozhsky schungite factory" (37.3% to the level of 2000), Medvezhiegorsky macadam factory (80.1%), Sortavalsky grinding-sorting factory (83.2%).

The deterrent of development of manufacture in 2001 was the unsatisfactory work of the railway transportation regarding spasmodic delivery of cars. Positive shifts have taken place in the work of the enterprises of the industry of building materials. In 2001 the index of physical volume of manufacture in this branch has made 112.1% to the level of the previous year.

The building enterprises producing competitive production modernize the industrial equipment. The basic sources of financing of investment projects are the unappropriated sources. In the past year the new capacities on manufacture of macadam (Open Society "Karelnerud", Open Company "Shokshinsky karier"), wood chipboards (Joint-Stock Company "Karelia - Evroimpeks WCB" Medvezhiegorsk), reconstruction of capacities of the enterprises of stone production and stone processing (Open Company "Karelsky granit", Kondopoga) are put into operation. The leading enterprise of the mining complex of the RK is the Open Society "Karelsky okatysh", which provides more than 98% of manufactures of the commodity output of the branch in ferrous metallurgy. The enterprise is one of the largest and socially significant in the republic, its share in the total amount of industrial production of the republic makes about 15%.

On the volume of extraction of ore and release of iron-ore concentrate the Open Society "Karelsky okatysh" takes the fifth place among 25 Russian ore dressing combines of the given structure. Thus the enterprise is compelled to work with the highest in the branch level of ratio of volumes of dredging of the overburden rock and extraction of ore. Necessity of work with the increased factor of stripping is related to restoration of working parameters of the working quarries, which were broken in 1991-1997 years in connection with realization of the technical policy focused on the solution of problems of the current period and not designed for long prospect of work of the enterprise. Redistribution of the share of production and overburden operations has resulted in decrease of volumes of manufacture of iron-ore pellets and to losses by the results of work in 2001. The volume of manufacture of pellets has made 98.4% in comparison with 2000, however thus the total amount of extracted rock has grown by 10.6%. The average salary per employee has grown in 2001 by 37.9%, practically the debts of the enterprise for payments in the budget have been liquidated completely. The Government coordinates and maintains the concept of restoration of the ore base of the enterprise, which provides preservation and growth of the achieved volume of manufacture on long prospect, and also creation of base conditions for improvement of financial and economic results.

The Government of the RK through the representatives in the Board of directors has provided acceptance of the basic decisions promoting development of the ore base of the enterprise. The main one is granting the Open Society "Karelsky okatysh" licenses for the right of use of entrails with the purpose of extraction of iron ores of the Korpangsky deposit.

Activity of the Government in development of ferrous metallurgy is related also to realization of actions for financial improvement of the Open Society "Vartsilsky metal works". With this purpose jointly with the administration consecutive work on research of variants for attraction of investments in development of the factory and to the solution of problems of providing it with initial raw material will be carried out in the view of studying the opportunities of use of resources of large metallurgical combines of Ural.