Magnitogorsk (city of the magnetic mountain) is an industrial city in Chelyabinsk Oblast, Russia , located on the eastern side of the extreme southern extent of the Ural Mountains by the Ural River . It was founded in 1929 to exploit the rich magnetite iron ore of Mt. Magnitnaya , just east of the city. It was named after Mount Magnitnaya , a geological anomaly that once consisted almost completely of iron ore, around 55% to 60% iron. Magnitogorsk contains the largest iron and steelworks in the country . The city occupies land in both Europe and Asia .