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3 April 2017

Severstal Distribution to supply 1100 tonnes of rebar to Nordgold

The Moscow regional center of Severstal Distribution (part of the distribution network of Severstal’s Russian Steel division) has won the tender to supply 1100 tonnes of А500С 8−36 mm diameter rebar. The rebar will be supplied for the construction of a new gold mining facility “Gross”, in the south-west of the Republic of Sakha (Yakutia), 4 km from the Neryungri mine. The total volumes of rolled metal will be delivered to Nordgold, the owner of the facility, by the the end of April this year.

The deposit is located in the Olekminsky district of Yakutia, 125 km to the north-east of the BAM railway Ikabia station. The station currently has limited capacity, therefore the customer’s main requirement was that the delveries were made in batches with short delivery times.

This is the second tender the Moscow regional center has won to supply reinforcing bars for the Gross mine. In 2016, 1,000 tonnes of metal product were delivered to the site according to the customer’s specifications for the construction of production and warehouse complexes, infrastructure and housing facilities.

Timur Yudichev, deputy Head of sales for the Severstal Russian Steel distribution network, said:

"We have succeded in complying with all of our customer’s delivery terms by organising batch shipments from warehouses of three branches of Severstal Distribution. This second order for the supply of a larger shipment of rebar reflects recognition of the Company as a [customer-focused,] reliable supplier."

At full capacity, Gross is expected to produce around 12 million tonnes of ore and around 230,000 ounces of gold per year over 17 years. In early June 2016, Nordgold began construction of the mine, which is scheduled to be launched in the first half of 2018.