Integrated development of the mining industrial region Tomponsky

Location

• Tomponsky region of the Sakha Republic (Yakutia)

Project initiator

• Government of the Sakha Republic (Yakutia), OAO “South-Verhoyanskaya Mining Company” (OAO “Polyus Zoloto”)

Project characteristics

• The aim of the project is to create based on public-private partnership principles a large industrial area in the North-East of Russia on the base of electric power supply infrastructure industrial production facilities related to nonferrous metals mining.
• The project assumes the implementation of the following large investment projects:
  • Development of Nezhdaninskoe gold deposit
  • Development of Verkhne-Menkechenskoe polymetals deposit
  • Construction of Dzhebariki-Khaya coal power station
  • Construction of electric power and transport infrastructure
• The following constructions will be financed at the expense of budget allocations:
  • Thermal power station on the existing Dzhebariki-Khaya coal deposits with total funding of 15,4 mld. rubles VAT included in 2010 1st quarter prices;
  • Electric power lines and substations
    • HVL-220 kV “Khandyga – Razvilka”;
    • HVL-220 kV ”Dzhebariki-Khaya – Khandyga”;
    • HVL-110 kV “Razvilka – Nezhdaninskoe”; branch-line to Verkhne-Mechenskoe from HVL-110 kV “Razvilka-Nezhdaninskoe”);
    • Substation 220 kV “Khandyga”, “Razvilka”;
    • Substation 110 kV “Nezhdaninskoe”;
    • Substation 110 kV “Verhne-Menkechenskoe”, with total funding of RUR12,2 billion VAT included in 2010 1st quarter prices.
• The following construction works will be at the cost of private investors:
  • Nezhdaninsky Mining Enterprise with extraction and processing capacity of 3 m t a year. Construction investment is RUR 25,4 billion VAT included in 2010 1st quarter prices.
  • Verhne-Menkechensky Lead-Zink Mining Enterprise with of capacity 500 000 t of ore a year. Construction investment is RUR 4,2 billion VAT included in 2010 1st quarter prices.

Investment volume

• RUR 57,2 b

Infrastructure available

• KOLYMA Federal Road

Infrastructure required

• Design and construction of a thermal power station, power grid infrastructure

Cost of project

• RUR 57,2 b (in 01.01.2010 prices including VAT)

Implementation period

• The first phase 2011 and 2014 includes construction project documentation development (it should be finished by December 2012 and sent to FGU “Glavgosekspertiza” followed by designing facilities):
  • Nezhdaninskoe Mining Enterprise (GOK).
  • Verhne-Mechegenskoe Lead-Zink Mining Enterprise.
  • Thermal power station on the existing Dzhebariki-Khaya coal deposits
  • Electric power infrastructure
• The second phase 2013-2016 includes detailed engineering (designing finishes in 2014) and facilities construction:
• Industrial enterprices:
  • Nezhdaninsky Mining Enterprise with extraction and processing capacity of 3 m t a year;
  • Verhne-Menkechensky Lead-Zink Mining Enterprise with capacity 0.5 m t  of ore a year.
• Thermal power station on the existing Dzhebariki-Khaya coal deposits.
• Electric power infrastructure:
  • double circuit 220 kV “Khandyga – Razvilka”;
  • double circuit 220 kV ”Dzhebariki-Khaya – Khandyga”;
  • HVL 110 kV “Razvilka – Nezhdaninskoe”;
  • Substation 220 kV “Handyga”, “Razvilka
  • Substation 110 kV “Nezhdaninskoe”.

IRR

• Will be calculated after joining of all estimates into a single financial model

NPV

• Will be calculated after joining of all estimates into a single financial model

Investor’s involvement

Investors:

• ZAO Polyus – construction of Nezhdaninsky Mining Enterprise
• OAO Geopromining – Verhne-Menkechensky Mining Enterprise investors to design and construct thermal power station and electric power supply networks (power supply lines, step-down and step-up substations) have not been identified.

Project detailedness

• Techno-economic evaluation of construction of "Coal electric station in Tomponsky region Republic of Sakha (Yakutia)."
• Techno-economic evaluation of the cost of the external electrical network infrastructure of the perspective companies of Tomponsky mining region.
• Feasibility study of exploratory conditions for calculation of Nezhdaninskoye gold deposit.
• Preliminary geological and economic evaluation of Mining Complex on the existing polymetallic deposit Verhne-Menkeche.

CEOof an organization implementing the project

• General Director Igor Igorevich TSUKUROV, OAO “South-Verhoyansky Mining Company”