BAKU, Azerbaijan, Apr. 6
By Nargiz Sadikhova - Trend:
The value of investments in construction of the mining and processing plant within the Baimskaya copper project will be 570 billion rubles ($7.4 billion), Yury Trutnev, Russian Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District said, Trend reports citing Russian media.
Trutnev made the statement answering journalists’ questions during the visit to Chukotka in Russia.
The Baimskaya copper project in Chukotka is one of the world’s most significant undeveloped copper assets with the potential to become a large scale, low cost, open pit copper mine. Kazakhstan’s KAZ Minerals operates the project.
He said that 1 trillion rubles ($13.09 billion) of budget revenues will be paid over the project’s implementation, and 3,000 jobs will be created.
“This is a project that will actually transform the Chukotka economy, making it self-sufficient. It is necessary to figure out what investors must do, what the federal executive authorities, the administration of the subject must do, so that the project is implemented on time,” he said.
The Baimskaya copper project is expected to commence production by the end of 2027 and have an annual ore processing capacity of 70 Mtpa. The Bankable Feasibility Study is being prepared with an initial mine life of approximately 20 years based on JORC measured and indicated resources.
However, recent drilling indicates potential for the mine life to be extended by around 5 years. Life of mine copper and gold processing grades are estimated at 0.47 percent and 0.27 grams per ton respectively. The project will deliver elevated production and grades in the first five years and accordingly net cash costs are lower during this period.
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