Interview with the senior vice-president of Russian Platinum ,Gennady Piven in the Rossiyskaya Gazeta of July 23, 2012
Rossiyskaya Gazeta: The winning of the contest for the development of the southern part of Norilsk-1 deposit by Russian Platinum was rather unexpected. Gennady Fyodorovich, tell us about you're company, please.
Gennady Piven: The Russian Platinum Group was founded on the basis of the Khabarovsk Amur Miners’ Artel Plc. The main production assets of the company include the unique deposit of Konder situated in the north of the Khabarovsk Territory. This is one of the largest placer platinum deposits in the world. The company also includes Chernogorskaya geological exploration company (ChGRK) preparing the putting into operation of the Chernogorskoe deposit near Norilsk. In prospect it is planned to integrate the Chernogorskoe and Norilsk-1 deposits. The main owner of Russian Platinum is the President of Alliance Group Plc. Musa Bazhaev.
RG: How did you manage to win the contest?
GP: The main criterion of the contest was the content of technical and economic indices, which first of all took into account the scientific and technical levels of the subsoil sectors use programs and the terms of their realization as well as the proposals about social-economic development of Krasnoyarsk Territory and the nature conservation measures.
Russian Platinum as Amur Artel made the following proposals :
- To fulfill the geological exploration project and lead geological exploration works within 15 months (37 thousand linear metres);
- To put into operation the mining enterprise not later than in 120 months from the date of the license registration, including the building of an underground pit with productivity of 6 million tons per year within 90 months;
- To process the mined ores at the concentrating factory situated at the neighboring industrial site of Chernogorsky mining and metallurgical complex. The productivity of the both lines of the factory will make up 6 million tons per year each.
Thus, Norilsk-1 will be developed in full integration with the Chernogorskoe deposit. Actually, a united economic complex is created, thus the efficiency of the works increases.
Speaking about Norilsk-1, it provides more than 3,000 working positions in the Krasnoyarsk Territory. The operation term of the pit will make up about 60 years. The capital investments in the project will make up 78 billion rubles, including 58 billion rubles at the initial stage. The volume of tax income to the budgets of all levels and non-budget funds will amount to 858 billion rubles (37% of the ware products value).
The enterprise will meet all modern ecological and industrial safety requirements. Particularly, CO2 emissions will make up less than 40 kilos per ton of produced metals. Actually, this is 85 times lower than the contaminations emitted by the acting production in the Norilsk industrial region.
Our interest in the southern part of Norilsk-1 is conditioned by the fact that the sector is situated 10 km from the Chernogorskoe deposit and the mineral composition of the both deposits is identical. Thus, the development technologies are identical as well. We calculated, the platinum group metals will provide two thirds of the value of the ware products obtained from the ore. This is an important stage in solution of the problem set up by the company – to found a world leader in reserves and production of platinum in Russia.
RG: The works at the licensed sectors will start from point zero. Aren’t you frightened by the difficult climatic conditions of Taimyr? Do you have any problems about finding skilled personnel? How are you going to solve the problems of transportation and logistics?
GP: Amur has been working beyond the ridge part of Ayano-Maisky region of the Khabarovsk Territory and at the territory of neighbouring uluses of Yakutia since 1968. The climatic conditions in the region are similar to that in Taimyr. Winter lasts 7-8 months. The temperature in winter reaches -40-45 °C, in summer + 30 °C. Besides, the area is mountainous, thus the infrastructural conditions are more difficult than in the Norilsk industrial region.
Nevertheless, Amur is successful. This is the best proof of the professionalism of our personnel.
Speaking about the contractors, the country and the world leading design institutes are drawn into the development of mining, concentration and metallurgical projects: PeterGORproekt, Hyprotsvetmet, Gintsvetmet, SPb-Hyproshakht, MISiS, Kazhyprotsvetmet, Hatch. Bateman Engineering is the general designer.
Norilsk-1 and Chernogorskoe deposits are situated in the region with developed infrastructure, founded in Soviet times. The Alykel airport, a power transmission line and a gas pipeline are situated near there. Besides, there is connection with Dudinka sea and river port. This port is currently loaded at the rate of 3 million tons per year; the throughput capacity makes up 9 million tons. Thus, realization of our projects will provide supplemental loading of the port.
We have worked out the variants of building of our own Yenisei terminal near Dudinka or Igarka in case of unavailability of the access to the transportation infrastructure. The technical and economic assessment of the building variants was held by Lenhyprorechtrans institute.
Actually, it must be specified that the new large-scale projects in the Norilsk industrial region will assist to the growth of economic efficiency and environmental friendliness of Norilsk production. Russian Platinum came to the region not to increase its reserves and procrastinate over the poroject. We are going to put the deposits into operation, implement new technologies and provide dynamic development as soon as possible.
RG: When are you going to start extraction at Norilsk-1 and what will be the extraction volumes?
GP: The planned ore mining will start in 2022. In 2026 we are going to extract 12 million tons at Chernogorskoe and Norilsk-1 deposits. Mining at the first deposit will reduce in 2038-39 and mining at the second will increase. Thus, extraction at the level of 12 million tons per year will be maintained. There are enough ore reserves to maintain this level within 45-50 years. I have already mentioned, all ore will be processed at Chernogorsky concentrating and metallurgical complex.
RG: What is the current condition of the Chernogorsky project, what are its parameters and the sources of financing?
GP: By the end of this year the design of the mining and concentration complex and metallurgical production will be completed. They will become the basis for the determination of the parameters of the gas turbine power plant. Besides, it is also planned to use 10-15 megawatt wind generators and diesel power plants.
This year we’ll also choose the general contractor for building of the complex. Also, delivery of the equipment with long production period will start as well as building of a motor road which will be completed by the flood season in 2013.
It is planned to launch the deposit in Q4, 2013. We expect that it reaches its designated capacity in 2015. Besides, the building of the first line of the concentration factory (6 million tons per year) and the metallurgical complex for concentrate processing will be completed in 2015 as well. The processing of the concentrate and obtaining of nis material will start. The first ware products will be obtained in 2016.
The project will be financed using the funds of the shareholders ($400 million) as well as drawn funds. The credit agreements with Gazprombank at the rate of more than $800 million have already been signed.
RG: Where will the products be processed?
GP: Nis products will be dispatched via Dudinka for further processing in Krasnoyarsk.
RG: Some sources say, Konder reserves are almost exhausted. Will the extraction reduce?
GP: Initially, the extraction was led inside the crater and gradually descended along the Konder river-valley and the middle reaches of the Uorgalan River. The future development of the deposit is connected with the extraction in the lower reach of Uorgalan as well as the appraisal of the crater.
The plan of the current year presupposes mining of 121 thousand ounces (3,764 kilos) of platinum and 3 thousand ounces (93.3 kilos) of palladium, gold and rhodium. Such mining level will be maintained within next ten years. The known reserves will last up to 2028.
RG: Are you going to enter any new regions beyond the RF?
GP: No, not in the near future. When we obtain the license for Norilsk-1 we’ll have enough reserves for the long-term development of our company.
Source: http://gold.1prime.ru/bulletin/interview/show.asp?id=25663
Translated by Alexandra Utyasheva
