Global engineering and technology company Metso has signed a 6.5-year lifecycle services contract with Russian Copper Company (RMK), for the Mikheevsky GOK copper mine in the Chelyabinskya region in south-western Russia.
An extension to an earlier services contact signed in 2011, the latest €140m deal comprises a variety of comminution services including crushers, grinding mills, crusher and mill linings, maintenance services, operations as well as grinding media.
The new agreement, which marks the largest ever services contract signed by Metso, will help enhance the productivity at its Mikheevsky GOK copper mine.
Metso Mining and Construction president Andrew Benko said that the company is a complete service provider, and the addition of grinding media to its services portfolio fortifies its position in the industry.
"By adding grinding media to our services portfolio we can strengthen our position and offering to our customers even further," Benko added.
The services under the lifecycle services contract will be offered by about 85 operation and maintenance specialists as well as a product and process support team located at the Mikheevsky site and Metso's service hubs in Russia.
Metso will also provide the initial fill grinding media, continuous supply inventory as well as application support for process optimisation.
In addition, Metso will be completely aligned with the customer's production targets, as expected in life cycle service contracts, and will be paid on a cost-per-ton of ore processed basis.
Metso services business line Mining and Construction president João Ney Colagrossi said that the services provided under the contract, together with the support of the company's process technology and innovation experts, will boost RMK's productivity and reduce their overall cost.
"We will draw from our vast global experience with similar type of operations and guarantee a high level of service to Mikheevsky GOK", Colagrossi said.
The planning and development has commenced with start-up scheduled in the last quarter of 2013.
The order will be eventually booked in Metso's order intake, the first year's annual value of the additional agreement and the initial fill and inventory will be added in the Q1 2013 orders received.
Mikheevsky GOK is a greenfield project by Russian Copper Company and once operational at the end of 2013, the mine will treat 18 million tonnes of copper ore per annum.
Founded in 2004, RMK produces copper concentrate, copper cathodes and copper rods from mineral and secondary raw materials.
Image: View of the Mikheevsky processing plant construction works in Russia. Photo: Mining and Construction.