Metso Enters into Life-Cycle Services Contract with ZAO Russian Copper Company

Metso has agreed to a six and a half year life-cycle services contract with ZAO Russian Copper Company (RMK), for their Mikheevsky copper concentrator in the Chelyabinskya region in southwestern Russia. The contract encompasses a total comminution solution from process assistance to complete maintenance services which will also include grinding media.

The new agreement is an extension to an earlier services contact signed in 2011, making it the largest ever services agreement for Metso. The value of this addition is over EUR 140 million.

"This significant order with Russian Copper Company demonstrates our ability to make a true and sustainable difference to our customers' businesses. Metso is today a complete service provider and long-term service partnerships create value for both our customers and Metso. By adding grinding media to our services portfolio we can strengthen our position and offering to our customers even further", says Andrew Benko, President, Mining and Construction, Metso.

"We have been working with Metso to build both of our copper mines Mikheevsky and Tominsky, and the cooperation has thus far proven to be very successful. They have helped us choose the correct equipment, they have the capability to help us optimize the comminution circuit and the best people available to support us. By this new contract we continue our effective cooperation with Metso", says Vsevolod Levin, President of Russian Copper Company.

The new agreement will help optimize the productivity of the Mikheevsky GOK copper mine

The life-cycle services contract between Metso and the Russian Copper Company includes grinding media together with the comminution circuit maintenance and operational services. The services will be provided by approximately 85 operation and maintenance specialists and by our full dedicated product and process support team located at the Mikheevsky site and Metso's service hubs in Russia. Within this agreement Metso will also provide the initial fill grinding media, continuous supply inventory and application support for process optimization. As is customary with life cycle service contracts, Metso will be fully aligned with our customer's production targets and will therefore be remunerated on a cost-per-ton of ore processed basis.

"After signing this new contract, Metso is now responsible for the total comminution solution services at the Mikheevsky GOK mine including crushers, grinding mills, crusher and mill linings, maintenance services, operations and grinding media. This together with the support of our Process Technology and Innovation experts increase RCC'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", says João Ney Colagrossi, President, Services business line, Mining and Construction, Metso.

Planning and development is well underway with start-up targeted in the last quarter of 2013, after which Metso will maintain and assist in the operation of RCC's comminution circuit for 6 1/2 continuous years. The order will be gradually booked in Metso's order intake, the first year's annual value of the additional agreement and the initial fill and inventory will be included in the first quarter 2013 orders received.

Mikheevsky GOK is a greenfield project by ZAO Russian Copper Company (RMK), which is Russia's third largest copper producer. Once operational at the end of 2013, the mine will treat 18 million tons of copper ore annually. The company was founded in 2004. It produces copper concentrate, copper cathodes and copper rods from mineral and secondary raw materials.

Metso's mining and construction professionals specialize in always bringing the right technology, processes, machinery and services to our customers in the aggregates production, construction, mining and minerals processing and in metal and waste recycling. Expect results.


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