The web will help realize Bagaeva platinum projects on the Taimyr Peninsula at a cost of $4.4 billion


MOSCOW, November 10. VEB will participate in projects of “Russian platinum” Musa Bazhayev in the Krasnoyarsk region, the total cost is estimated at $4.4 billion the Corporation for half a year will take a decision on the allocation of funds of “Russian platinum” for the construction of the first phase of the project in the amount of $1 billion, depending on interest in the project, which Bazhayev ready to offer the VEB, the Bank also can attract partners from China. This was reported to journalists by the head of the Bank Vladimir Dmitriev and co-owner of “Russian platinum” Musa Bazhayev.

According to Bazhayev, “Russian platinum” plans by 2018 to start mining at the Montenegrin field, in 2019 – on the southern part of the Deposit “Norilsk-1”. “The start of production in the Montenegrin field is scheduled for 2018, “Norilsk-1″ – for 2019. By 2020 we will produce 5 tons of platinum per year. At the peak, up to 70 tons per year (2029 – approx. ed.),” he said.

Bazhayev said that the Montenegrin cost for the project is $1.2-1.3 billion, the remaining funds necessary for the development of the southern part of “Norilsk-1”. “We need $4.4 billion, including $1.2 billion – for the Montenegro project and the rest is “Norilsk-1”, – said the businessman.

The main producers of platinum are concentrated in South Africa. The world’s leading platinum producer is Anglo American Corporation, which in 2014 reduced the production of equivalent platinum by 21% to approximately 60 tons from-for strikes of workers. Also among the world’s largest companies producing platinum in South Africa, such as Impala Platinum and Lonmin. In Russia engaged in production of platinum group metals MMC Norilsk Nickel, as the world’s largest producer of Nickel and palladium and one of the world’s largest producers of platinum and copper. In 2014, Norilsk Nickel has made 85,5 tons of palladium and about 20 tonnes of platinum.

According to the representative of “Russian platinum” in the long term to 2029, the company expects to enter into a three of leading world companies for the extraction of platinum group metals with a production of 70 tons per year.

VEB’s Participation

On Tuesday, VEB and “Russian platinum” has signed the Memorandum of cooperation on implementation of projects in the Krasnoyarsk region. The parties intend to participate in the implementation and financing of projects for development of Chernogorskoye field and the southern part of “Norilsk-1”, containing the platinum group metals, copper, Nickel and cobalt.

According to the head of the Bank Vladimir Dmitriev, VNESHECONOMBANK is ready to participate in the equity of the project “Russian platinum” on the Taimyr Peninsula. “Of course the idea is not to remain permanently as the investor of the project, and use our entry from the point of view of increase of debt load and financial conditions of the project. In this case, we are interested in exit strategies with clear profitability,” said Dmitriev, not excluding the occurrence of EBV in capital projects, and in General, the “Russian platinum”.

In addition, the Bank plans to involve partners from China for the project “Russian platinum”, said Dmitriev. “When it comes to debt financing, we are negotiating. It is preferable to have partners from China, where we have experience. From the point of view of entering into the capital will attract RDIF with their experiences with investors from the Gulf countries and Southeast Asia,” he said.

Projects on the Taimyr Peninsula

“Russian platinum” owns licenses to develop two oil fields in the Krasnoyarsk region – Montenegro and the southern part of Norilsk-1.

In early 2012 the company started to design Montenegrin MMC. Now the project involves the construction by 2018 quarry to 9 million tonnes of ore per year processing plant and associated infrastructure.

In 2013 the Russian government approved a “daughter” of “Russian platinum” competition winner of the southern part of Norilsk-1. The total cost of licenses cost the company Bazhayev 4.9 billion. The project to develop the Norilsk-1 is to be implemented in two stages with the achievement of ore production to 18 million tons per year.

Earlier “Russian platinum” planned to put into operation the Chernogorskoye Deposit at the end of 2017. Thus, on Tuesday, the company postponed the commissioning of this facility. “All the necessary documents for prolongation of the terms of this licence, we have already sent in MNR”, – said the representative of “Russian platinum”.

The Chernogorskoye field reserves amount to 143 million tonnes of ore containing platinum group metals, Nickel, copper and cobalt. Prognostic evaluation of reserves of the southern part of Norilsk-1 is about 1.5 thousand tonnes of platinum group metals.

In addition to projects on the Taimyr Peninsula, Russian platinum PLC is engaged in the exploration of platinum group metals Conder in the Khabarovsk region, where every year produces about 4 tonnes of platinum.

Also in 2015, “Russian platinum” has acquired a new mining project in Kyrgyzstan, having won the competition to develop the gold Deposit Jerooy. The company paid for the license to $100 million and plans to invest in about $250 million Partner of the “Russian platinum” this project was Kazakh businessman Alijan Ibragimov.