Mechel OAO, which is one of the leading mining and metal companies in Russia, have announced that they are to open an experimental industrial plant that is intended to produce ferronickel.

The plant, named Southern Urals Nickel Plant OAO, was launched at a recent ceremony that saw Orenburg Region’s Governor Yuri Berg, State Dum? Deputy Viktor Zavarzin, the city of Orsk’s Administration Chief Viktor Franz, Mechel OAO’s Chairman of the Board of Directors Igor Zyuzin, Oriel Resources Ltd.’s Chief Executive Officer Alexei Ivanushkin, Mechel-Ferroalloys Management Company’s Chief Executive Officer Gennady Ovchinnikov and Southern Urals Nickel Plant’s Managing Director Mikhail Mazhukin in attendance.

The plant is intended to increase the plant’s smelting facilities, thus raising production efficiency and lowering costs. It is also hoped that the new plant will be much more environmentally friendly and will product less waste.

The 12-MW complex’s annual production capacity is some 4,500 tonnes of ferronickel, with an average 20% nickel content.