EuroChem’s iron ore concentrate to be delivered to China via NSR
EuroChem has planned for the next week first shipment of its cargo to China through the Northern Sea Route, the Company said Thursday.
On July 10th and 12th, two Murmansk Shipping Company’s bulkers laden with 44,000 tons of iron ore concentrate from EuroChem’s Kovdorskiy mine will leave the Port of Murmansk and make for Jingtang, northern China.
Iron ore concentrate is the main raw material used by the metal industry to produce cast iron. China, the leading steel producer globally, is the main consumer of EuroChem’s main iron ore, the Company’s press release said.
Igor Nechaev, EuroChem’s Logistics Director, commented: “EuroChem plans to use the Northern Sea Route for deliveries to China on a regular basis. Using this passage, rather than the traditional routes via the Suez Canal or the Cape of Good Hope, will cut delivery time in half and significantly bring down transportation costs.”
The total distance between Murmansk and the ports in northern China is 6,900 miles, via the Northern Sea Route. The Arctic-class 23,000dwt dry cargo ships Mikhail Kutuzov and Dmitry Pozharsky will be escorted by the nuclear-powered icebreaker Vaygach. The cargo ships will cross the Arctic Ocean basin, pass the Bering Strait and make their way along the coasts of Russia, Japan and South Korea. The Vaygach will escort the cargo ships for about 2,000 miles; from the Kara Strait to just off Wrangel Island. The ships are scheduled to arrive at their final destination within the first ten days of August.
With an approximate value of $8 million, the iron ore concentrate will be used by large metals companies in the north east of China. EuroСhem plans to boost iron ore concentrate transshipment through the Murmansk Port by up to 3 million tons in 2012, thanks to strategic agreements between EuroChem, the Murmansk Commercial Sea Port, Murmansk Shipping Company and FSUE Atomflot.
EuroChem is Russia’s largest mineral fertilizer producer and ranks among the top three European and top ten global producers by nutrient capacity. We aim to become a top five player by size and profitability within the next 5 years, and maintain our competitive cost advantage through better efficiency and deeper vertical integration.