Professional Conference and onsite visit “Mining of Russia and CIS: Construction and Modernisation”

Arkhangelsk region

Preliminary investment – 37,5 billion roubles

PGRK (The First Ore Mining Company is a subsidiary of AtomRedMetZoloto) plans to construct a mining and processing plant at Ostrov Yuzhny of the Novaya Zemlya archipelago (the Arkhangelsk region). The plant will be engaged in mining and processing of lead-zinc ores and production of zinc and lead concentrates. The project implies infrastructure establishment, primarely the port one. Engineering research for a port complex comstruction was commenced in the summer of 2018. The complex will be the major infrastructure facility of the mining and processing plant project. The plant will be constructed on the premises of Pavlovskoye field which reserves are estimated at over 2,5 million tonnes of zinc, 549 thousand tonnes of lead and 1194 tonnes of silver. The construction will be commenced in 2020. In 2023, a large-scale mining and processing complex will process up to 3,5 million tonnes of ore per annum. Project capacity of the plant will comprise about 220 thousand tonnes of zinc, 50 thousand tonnes of lead concentrates and 16 tonnes of silver per annum. To date PGRK is negotiating with the Russian Ministry of Transportation, Federal Agency for Fishery and other government agencies.

Magadan region

$300 million

Commissioning of plant’s second phase includes capacity increase of the pit and gold beneficiation plant, construction of a new substation, expansion of existing workers’ settlement, as the number of workplaces will rise. Corresponding quadruple agreement was signed by the Government of the Magadan region, Gazprombank, RusHydro and Pavlik company. The project will recieve the support to develop the second phase accompanied by the capacity increase to 10 million tonnes of ore per annum. To date plant’s capacity equals about 8 tonnes of gold, new phase will allow annual production to reach 12 tonnes of gold. Once the Pavlik deposit’s second phase is commissioned, annual output of Kolyma will exceed 40 tonnes per annum and comes close to the Krasnoyarsk region’s output, the region is the industry leader in Russia.

Buryat Republic

74 billion roubles

Plant construction can be commenced in Q 1 of 2020. In 2019, Far East Investment and Export Agency and Ozernaya Mining Company signed an agreement on cooperation within the project for construction of Ozerny Mining and Processing Plant in Buryatia. A facility for extraction and processing of lead-zinc ore with the capacity of 8 miilion tonnes per annum and a facility for production of zinc and lead-silver concentrates are planned for construction on the premises of Ozernoe refractory polymetallic ore deposit. Project investments are valued at 74 billion roubles before 2024. The commissioning will be executed in two phases 4 million tonnes each. In 2024, the facility is expected to process 8 million tonnes of ore per annum. In 2020, the initiator intends to receive a loan. Besides, the investor accounts for a state subsidy for infrastructure.

Repeblic of Sakha (Yakutia)

44,1 billion roubles

Inaglinskiy Mining and Processing Plant (belonging to a priority development area) uses the resources from Chulmakanskoe deposit. The construction of a new screening plant is planned in the upcoming future, plant’s capacity will comprise 6 million tonnes of coal per annum. Project developer is UK Kolmar.

Khabarovsk region

$1,8 billion

Russian Copper Company announced the purchase of Malomyzhskoe deposit in the Khabarovsk region. The deposit is one of the largest gold-copper-porphyric deposits in the world. It is located 220 km from the Chinese boarder, in a close proximity to the federal highway. The facility will integrate four pits, refuse piles from strip mining operations, a screening plant, a tailings storage and an industrial site facility. The capacity of the future mining and processing plant will comprise 56 million tonnes of ore per annum. The first phase will be commissioned in 2023. Overall project investments are valued at over $1,8 billion, life span will comprise about 25-37 years.

Chukotka Autonomous Region

$2 billion

The commissioning of Baimsky Mining and Processing Plant is planned for 2022, the facility will be located on the premises of one of the largest copper-gold deposits Peschanka. The installed capacity will be reached in 2028. Plant construction is expected to attract about 360 billion roubles of investment in the region and create over 3,5 thousand workplaces. Project agreement was signed in 2018. The project was included in social economic development strategy of the Far East and Baikal region. Baimsky Mining and Processing Plant will produce 148 thousand tonnes of copper and 276,5 thousand ounces of gold per annum. Kaz Minerals is the investor. Estimated Baimskaya licence area’s reserves comprise 23 million tonnes of copper and 2 thousand tonnes of gold. GDK Baimskaya owns the licence for Peschanka with the reserves equalling 7,1 million tonnes of copper.