Key production and economic activities of the ummc are as follows:

• mining and processing of copper raw materials and production of copper cathodes;

• output of value-added products from copper and other non-ferrous metals: copper wire rod, cables, copper powders, copper powder products, non-ferrous rolled products, radiators, etc.;

• recovery of co-metals: production of gold and silver bank quality bars, selenium and tellurium;

• production of chemicals: sulfuric acid, copper sulfate, nickel sulfate, xanthogenate;

• mining and processing of zinc raw materials, production of zinc and zinc-based products;

• galvanizing of metal structures;

• processing of secondary lead-containing raw materials, production of lead and lead alloys;

• mining of iron ore and production of iron ore concentrate; manufacturing of rolled steel and gauged steel;

• manufacturing of construction products: brick, crushed stone, etc.;

• projects on construction of residential, commercial and office buildings;

• production of agricultural goods;

1. Discuss the questions:

1. Where is the company located?

2. What are the main operations and activities of the company?

3. What is the company’s mission?

4. Does the company have any social programmes? What are they?

5. What does the company produce?

Projects

Realizing investment projects UMMC is focused on technological renewing of the sites in accordance with the latest requirements, including environmental safety standards, on expanding its own raw material base, increasing the production of end products, developing the new lines of business. Strategic programs on development of metallurgical and processing complexes up to 2015 and mining complex up to 2020 have been developed. Raw material complex The specific character of doing business in mining and metallurgical industry requires special attention to the raw materials. Therefore, UMMC assigns a key role to raw material base compensation and extension. About 70% of total investments in 2010 were spent for development of ore mining and processing infrastructure. Today UMMC’s smelters process 99% of own feedstock. UMMC mining segment includes 24 mining and processing enterprises. UMMC mining enterprises have got 138 licenses for the use of subsurface mineral resources with purpose of exploration and mining of natural resources. This is development of copper, iron and complex ore deposits. Development of the major ore resource Gaisky GOK (Orenburg oblast) is an issue of the burning importance to the UMMC. In this connection the strategic program of the GOK development has been worked out. The main ideas of the program completely reflects the production process and support expanding the underground pit (by means of mining deep and super-deep levels), developing the Dombrovsk group deposits and re-equipment of the Gaisky GOK concentrator. In 2011 UMMC is going to invest about RUR 4.3 bln. for the development of Gaisky GOK. In accordance with the Program of Mining and Dressing Enterprises Development in the Republic of Bashkortostan for 2011-2015 adopted in March of this year, ore mining volumes of these companies shall be increased from 7.5 mln. tpy to 10.5 mln. tpy. To meet this task UMMC, for its part, shall invest RUR 31 bln. during five years. There are two work directions: mining base expansion and growth of mining and dressing enterprises efficiency. In spring of 2010 UMMC started construction of underground mine at Safyanovskoye deposit (Sverdlovsk oblast). The underground mining will be the second stage of Safyanovka development which is currently developed as an open-pit. According to the project schedule the first stage of the underground mine will be put into operation at the end of 2014. 2. Discuss the questions:

1. What are the future plans of the company?

2. Characterize the company’s policy towards raw materials?

3. Describe the company’s mining segment/

4. What raw materials does the company use?

5. Where does the company develop ore resources?

Metallurgical complex UMMC is intended to complete the construction of the first stage of up-to-date tankhouse at Uralelektromed’ site till the end of 2011 (Verkhnyaya Pyshma, Sverdlovsk oblast). Cost estimates of works is RUR 4.4 bln. The design of new tankhouse includes the latest developments and new technologies for copper electrorefining. Advanced voltage monitoring system will be introduced to decrease the production power consumption. Production processes and working operations will be integrated by means of mechanization and automatization. Following the introduction of new tankhouse with capacity of 150,000 tpy UMMC’s copper cathodes production will be increased up to 500,000 tpy. According to the program of perspective development of Electrozink for 2007-2015, the plant has to ramp up the zinc production up to 110,000 tpy and increase lead production up to 50,000 tpy. The modernization of zinc production is underway. New three-stage zinc solutions treatment will be put into operation in leaching plant allowing the SHG zinc production. Charge blending and pelletizing plants will be installed in Waelz processing line increasing its efficiency by 10%. Electrolyte air cooling system (cooling towers) will be introduced in 2012 resulting in significant reduction of river water take-up and industrial effluents discharge. The renovation of smelting facilities is primarily focused on the ecological problems. The program of reconstruction of the chemical and metallurgical facility of Svyatogor is underway. This program will provide the increasing of the sulfuric acid shop output by one and a half. It will provide substantial decreasing of atmospheric emissions. Step by step the Company makes copper-smelting process meet all European requirements on ecology. In the ferrous sector the Group realizes its first project of construction the mini-mill. UMMC builds the electrometallurgical plant in Tyumen which cost is RUR 20 bln. The mini-mill will produce 550,000 tons of steel rolled bars per year for building, oil and gas and machine-building industries. The products will be consumed by such domestic markets as Tyumen oblast, Khanty-Mansiysk and Yamalo-Nenets Autonomous Regions, Omsk, Kurgan and Sverdlovsk oblasts. Today all required works are performed at the site, over ten large professional contractors are involved and almost all major equipment is delivered. The first output of the mini-mill is scheduled for 2013.

3. Discuss the questions:

1. Describe the design of the new tankhouse at Uralelektromed (Verkhnyaya Pyshma, Sverdlovsk oblast). What are its advantages?

2. How will the company increase zinc production?

3. What benefits to the environment will the new cooling system in Waelz bring?

4. What benefits to the environment will renovations in smelting facilities bring?

5. What is the first project in the ferrous sector?

6. What will the mini-mill produce?

7. What is the cost of the electrometallurgical plant in Tyumen?

Building complex Within the preparation for Sochi Olympics-2014 UMMC takes a part in building of sport facilities. The company will complete erection of 7,000 seats Small Ice Arena which will be one of six arenas of the Olympic park. Architectural concept of the future arena was developed by StahlbauPichler (Italy). While selecting architectural ideas Italian specialists followed their wish to compose the image of this future arena with “European feeling of space and volume as well as with originality of European style”. The building under construction will have up-to-date equipment in accordance with world standards on light, sound and HD TV. As a result there are strict requirements to video walls, boards, press-center equipment and safety system operation. Under the general practice the cost of such building erection was determined as USD 7,000 per one seat. Women ice-hockey tournament, some matches of man ice-hockey tournament and competitions of paralympic hockey-players are proposed for performance at Small Ice Arena during Olympic Games. Agricultural complex Creation of a complete cycle from raw material production to final product output is a strategic task of UMMC’s agricultural division development. In March of 2011 UMMC-Agro brought in line the first stage of new greenhouse complex located not far from Ekaterinburg. Fresh, natural and environmentally sound tomatoes are cultivated at 4 hectares according to state-of-the-art technology. Low-capacity technology provides completely automatic computer system for making optimal microclimate, automated irrigation and customized plant nutrition system. In 2010 UMMC-Agro gathered 1,560 tons of tomatoes. In general the greenhouse complex will include three parts with total area of 12 hectares and annual output of up to 6,500 tons of vegetables.

4. Match the synonyms:

State of-the-art to finish

Take part up-to-date

Equipment highly developed

To complete participate

Advanced reduce

Decrease apparatus

Underway important

Significant on the move, in progress

5. Discuss the questions:

1. How does the company prepare for Sochi Olympics-2014?

2. Describe the design of the Small Ice Arena (number of seats, space, light, sound, equipment, etc.)

3. What will it be built for?

4. Describe the new agricultural complex (its location, area, production, equipment).