New Model Range of Quarry Electric Shovels for Mining Industries of Russia, CIS-countries and the World

IZ-KARTEX is a dynamically developing engineering and sales company incorporated by OMZ Group. The Company has a large engineering center equipped with advanced computer hardware and software. One should admit that the current model range of quarry electric shovels is loosing its efficiency with the expansion of mining scope, development of new deposits, which are unique in terms of ore and coal reserves, and it cannot meet an ever growing demand in mining machinery of high unit capacity.

In 2008-2010 the Company will turn to the manufacture of a new model range. The strategy of the development and manufac­ture of this new model range is based on the analysis of the global mining industry development and market demand, long-term experience of manufacture and operation of quarry shovels and advice of mining operators.

Fig. 1 A new product range of quarry electric shovels manufactured
by IZ-KARTEX and effectively suiting size groups of quarry dump trucks

Fig. 2 IZ-KARTEX new generation of rope and rack standardized shovels

IZ-KARTEX new product range and competitive shovel models of foreign origin Specifications

At the design stage IZ-KARTEX focuses on shovel compatibility with quarry trans­port facilities. Neither dump truck nor shovel solely can provide for the efficiency of the mining process if they are not opti­mized within the framework of a Shovel-Truck System (STS). IZ-KARTEX electric shovels of all standard series are designed for the operation in conjunction with dump trucks and self-dumping cars of a broad payload range, among which 90,130, 220 and 320t shovels are baseline models.

A new family of power shovels includes four size groups (see Fig. 1):

I size group - EKG-12K power shovel (rope shovel with a 12 m3 baseline bucket).

II size group - standardized shovel available as two options: EKG-18R (rack shovel, 18 m3 baseline bucket capacity) and EKG-20 K (a rope shovel with a 20 m3 baseline bucket).

III size group - standardized shovel available as two options: EKG-32R (rack shovel, 32 m3 baseline bucket capacity) and EKG-35K (rope shovel with a 35 m3 baseline bucket).

IV size group - EKG-50 (rack shovel, 50 m3 baseline bucket capacity).

Every size group of power shovels has an 80% standardized sup­porting base, on which rack (R) or rope (K) equipment (Fig. 2) can be optionally installed. It is a good opportunity for surface mines to have a fleet of machines for different mining and operation conditions without any additional repair and maintenance costs. No competitor throughout the world can offer anything similar.

Power shovels are intended for excavation and loading of hard rock, semi-rock and soft rocks in surface mining of miner­al deposits in any climate. New machines are most efficiently used in 12-20 m high faces.

New power shovels are available with baseline and elongated working equipment for highwall mining, loading onto transport facilities standing above the shovel floor level and for some other conditions. Shovel specifications are given in the Table.

IZ-KARTEX power shovels are not inferior to similar foreign machinery in terms of process-dependant and performance parameters (see Table), they require lower capital expenditures (by 20-40%) and operation costs. High standardizing level of rack and rope shovels makes significantly easier the mainte­nance of the machinery fleet and meets any requirements of

the customers in Russia and abroad, in coal and non-metallic mineral sectors, ferrous and non-ferrous metal industries. Implementation of the strategy for the development of IZ-KARTEX for 2008-2012 will strengthen the Company's position in the mining equipment market and allows it to be included in the group of the world three top manufacturers of electric shovels together with P&H Mining Equipment and Bucyrus International Inc.

OMZ Group

OMZ Group is the largest heavy machinery manufacturer in Russia. It specializes in engineering, manufacture, sales and maintenance of equipment and machinery for the nuclear sector, oil and gas, and mineral mining industries, as well as producer of special steels, and provider of services fora broad range of industries.

The Company was founded in 1996, on December, 19 the Open Joint-Stock Company Uralskiye Mashinostroitelnye Zavody was registered in Ekaterinburg. In 1999, Izhorskie Zavody merged in the Company, which was then renamed as OMZ Group.

In 2004, the Czech companies Skoda Steel and Skoda JS, and in 2008, Cheteng Engineering joined OMZ Group. OMZ Group's production facilities are located in Russia (Izhorskie Zavody and MK Uralmash JV Company) and in Czech Republic (Skoda JS, Pilsen Steel, Cheteng Engineering). OMZ Group shares are traded in Russia and on London, Berlin, Munich, New-York stock exchanges.

Core businesses of OMZ Group:

- Machinery and equipment for the nuclear sector;

- Oil and gas projects and equipment;

- Metallurgy (special steels and foundry processes);

- Mining machinery and equipment.

OMZ Group means:

- Unique production facilities and a leading position of a manufacturer of machinery and equipment for the nuclear sector, oil and gas, petrochemical and chemical industries, large-size mining machinery, super-duty forging oversize and cast products made of special steels.

- Integrated production-engineering, research and manufacture and innovation system.

- The largest automated metalforming integrated system in Europe.

One of the core businesses of the Company is the manufacture of machinery and equipment for nuclear power plants with 440 and 1000 MW water-moderated reactors (WER-

440 and WER-1000). Izhorskie Zavody (IZ) is the only facility in Russia and the CIS manufacturing shells for NPPs operating WER-type reactors. IZ is one of the most important contributors to the Federal Special-Purpose Programme of the Nuclear Power Sector Development. The nuclear machinery and equipment manufactured by OMZ Group companies is successfully operated by NPPs of Russia, Ukraine, Bulgaria, Finland, China and some other countries.

A special business area of OMZ Group is the production of semi-finished and finely machined specialty steel products for major industries, such as power engineering, heavy machinery manufacture, shipbuilding industry, etc. The foundry process potential of the Company provides for a full steel casting cycle.

OMZ Group aggressively develops its oil and gas business aiming at a step-by-step turning into a EPCM contractor with a capacity of competing with well-known foreign operators of the EPCM market and solving the problems at all stages of a project (from idea to implementation) providing design and turn-key construction services for large projects in oil a gas industries.

In terms of price-quality ratio the products of OMZ Group successfully compete with those manufactured by the leaders of the oil and gas industries. Its customers are ОАО Gazprom, OAO NK Rosneft, OAO NK Lukoil, OAO Tatneft, etc.

Manufacture of surface mining machinery is a promising and successfully developing business area of the Company. IZ-KARTEX Company established on the basis of mining machinery manufacture facilities of Izhorskie Zavody is incorporated by the OMZ Group, which is the leading heavy machinery manufacturer in Russia.

For more than 50 years in St. Petersburg (Kolpino) Izhorskie Zavody has manufactured power shovels for surface mining. Over these years more than 2,700 quarry electric shovels of 5-15 m3 bucket capacity have been supplied to consumers. These fabulous machines have become major "wheelhorses" for the mining industry. Shovels manufactured by the Company are in operation at all large open pits and surface coal mines of Russia and the CIS.