KAZ Minerals Acquires Copper Project in Russia’s Far East
The Baimskaya project has current JORC-compliant resources of 9.5 million mt of copper at an average grade of 0.43% copper and 16.5 million oz of gold at an average grade of 0.23 g/mt gold. The project has a license area of 1,300 km2 that offers potential for resource expansion.
Capital expenditures to develop Baimskaya are estimated at $5.5 billion, subject to a feasibility study that is scheduled for completion by the end of 2019. Detailed engineering, procurement, and construction are currently planned to take place from 2020 through 2026, followed by ramp up to full production by the end of 2027.
Baimskaya is located in a region identified by the Russian government as strategically important for economic development and is expected to benefit from state infrastructure development and tax incentives. A prefeasibility study of the project assumed 60 million mt/y of ore processing capacity through two concentrators.
KAZ Minerals Chair Oleg Novachuk commented, “The acquisition of Baimskaya marks the next stage of the transformation of KAZ Minerals. The development of this new project in Russia will enable the Group to continue its industry leading growth, delivering both value and volume as the copper market is forecast to enter a period of significant supply deficit. Through our successful execution of the Bozshakol and Aktogay projects in Kazakhstan, we have built a track record for project execution that makes KAZ Minerals the ideal platform to develop this globally significant asset.”