Stone Suitability Study and Operational Prerequisite Assessment of Ruskeala Mine

Republic of Karelia, for construction stone production purposes in accordance with Western standards. Using geological research and trial mining, a high-quality quarry site would be identified. In order to study the quality of the stone, the intention was to bring sample batches to Finland for research. Some of the samples would also be studied in Russia. Modern mining equipment was to be utilised and a research boring unit was to be developed to serve the mining needs. The project was to train the personnel for the mining of the stone type in question. In addition, the international marketing opportunities for Ruskeala marble and the possibility of establishing refining operations at Tohmajärvi were to be researched. The project was based on the long-term cooperation between Juuan Dolomiittikalkki Oy and JSC Ruskealski Mramor and the Ruskeala marble deposit utilisation contract..

Negotiations were conducted with the Russian partner over a period of approximately one year; however, JSC Ruskealski Mramor declared bankruptcy and the planned cooperation effort was discontinued. For this reason, the applicant established a company of its own (OOO Idn Kivi), which could be used to apply for a land-use licence for the area, a lease agreement and other operational permits. The quarry area was leased from the Town of Sortavala and the operational permits were obtained from the Ministry of Natural Resources of the Republic of Karelia. Some of the mining equipment was leased from Russia and some was delivered from Finland. Due to preliminary difficulties, actual effective mining did not take place until the summer of 2004. The necessary sample drilling and test cutting of the marble was successfully completed during the project. Sample lots of block stone were brought to Finland for research. Some of the stone was studied in Kaalamo in Russia. The research discovered that the stone is not of sufficient quality to be used for construction; however, Juuan Dolomiittikalkki Oy may use the block stones and marble pieces for manufacturing decorative crushed stone or ground limestone. OOO Idn Kivi has mining rights in Ruskeala until 2028. The mining activities can continue on a solid foundation due to the experiences gained during the project, and some of the equipment and personnel are ready for operations in Ruskeala as a result of it. Due to the preliminary difficulties and delay in beginning operations, the market study and product development research would mostly not be completed until after the project. Training of the workforce was not accomplished as planned, since mining did not begin until six months before the conclusion of the project. It was, therefore, no longer possible due to time restrictions; however, approximately 10 Russians were employed by the quarry in various positions. As a crucial result of the project, information was obtained regarding operating in the mining industry in Russia and experience of arranging tasks in an industry regulated by permits and their numerous administrative regulations was gained. In addition, information was obtained on the Ruskeala marble deposit, its quality, scope, opportunities for processing and the suitability of Finnish and Russian mining equipment for working with hard marble. Information was also obtained regarding marble deposits in Russia, the Baltic region and Finland in general as well as about distribution channels and pricing.