CHERNOGORSKAYA MINING COMPANY AND METSO OUTOTEC SIGNED A CONTRACT FOR THE DELIVERY OF THE CONCENTRATOR
Chernogorskaya mining company and Metso Outotec has signed a landmark contract to deliver all key technology for a new concentrator plant in the Norilsk industrial district. The concentrator is operated by Chernogorskaya mining company, which is part of the Russian Platinum group. The delivery is based on Metso Outotec’s proprietary technology and includes key equipment for grinding, flotation and separation. Metso Outotec will also deliver electrification, instrumentation and automation for the concentrator. The contract exceeding EUR 100 million has been booked into Minerals’ Q3/2021 orders received.
The new concentrator plant is expected to start production in 2023. It will process nickel-copper ore with high palladium and platinum content from the Chernogorsk deposit with an annual capacity of 7 million tons. Metso Outotec has done the basic engineering for the concentrator plant in the earlier stages of the project.
”Russian Platinum is aiming a highly efficient and environmentally friendly production process in the industrial region of Norilsk. The construction of the Chernogorsk GOK is the first stage of this large-scale project, the implementation of which will make our company one of the leaders in the production of palladium and platinum. Use of advanced technical solutions and reliable equipment is an absolute priority. The partnership with Metso Outotec and continuous support from its local operations in Russia are important components to ensuring the success of the project,” says Evgeny Vorobeichik, Managing director at Russian Platinum.
"Metso Outotec has ample experience with the arctic environment in the Norilsk region as well as with its uniquely rich and demanding ore types. We are delighted to be able to support Chernogorskaya in this greenfield project, where we will be delivering the whole concentrator with the latest technology,” says Markku Teräsvasara, President of the Minerals business area at Metso Outotec.
VEB.RF AND VTB GROUP TO FINANCE DEVELOPMENT OF ONE OF THE WORLD’S BIGGEST PLATINUM-COPPER-NICKEL DEPOSIT
VEB.RF, VTB Group and Russian Platinum signed a memorandum of intent to finance the Chernogorsk deposit of platinum-copper-nickel ore in the Krasnoyarsk Region. The signing ceremony took place during the St. Petersburg International Economic Forum in the presence of the Russian President Vladimir Putin (a live link-up).
The memorandum was signed by: VEB.RF Chairman Igor Shuvalov, VTB President and Chairman of the Management Board Andrey Kostin and Russian Platinum President Musa Bazhaev.
The project involves building a mining and processing plant for seven million tonnes of ore per year in the Chernogorsk deposit. According to the company’s estimates, the project’s phase one investments exceed RUB190bn including long-term project finance. The project will receive financing under the Project Financing Factory programme, with VEB.RF acting as the Factory’s operator.
Igor Shuvalov, Chairman, VEB.RF :
“Jointly with VTB, we are structuring the transaction to finance the project for the construction of a mining and processing plant in the Chernogorsk deposit under the Project Financing Factory programme to minimise the risks of the project initiator and creditor at the investment and operational stages of this expensive project. All rouble-denominated tranches, including tranches from a commercial bank, are government subsidised for the entire length of the loan in respect of fluctuations in the key interest rate of Russia’s Central Bank. VEB.RF will also pay an additional tranche to cover the project budget increase and pay interest at the project’s investment stage, thus allowing the borrower to raise the classic project finance. Successful implementation of this large-scale project will make a significant contribution to the increase of exports. The project contributes towards national goals related to Russia’s export targets.
Andrey Kostin, President and Chairman of the Management Board, VTB Bank:
“The construction of a mining and processing plant in the Chernogorsk deposit is a large-scale project for the Russian Arctic zone, which will facilitate the region’s industrial and economic development. The comprehensive development of the deposit will make the Russian Platinum one of the world’s leaders in producing platinum group metals, thus strengthening Russia’s leading position in the industry and export potential. VTB Bank is making investment in the project in the form of bridge financing provided to Chernogorsk Mining Company.”
Musa Bazhaev, President, Russian Platinum:
“Development of the Chernogorsk deposit is the first stage of the project implemented by the Russian Platinum Group in the Norilsk industrial district. The next stage involves the development of the southern part of Norilsk-1 deposit. The project will create a state-of-the art industrial complex comparable in scale with existing facilities and distinguished by the use of modern technologies including resource-saving and environmental protection technologies. Russia will rank among the leaders in the global palladium and platinum market. Involvement of VEB.RF and VTB Group in the project will help to decrease the implementation period and improve ther project’s effectiveness.
Today, the Chernogorsk deposit contains 131 million tonnes of ore rich in 4E metals (palladium, platinum, rhodium, gold) - 3.19 grams per tonne, copper - 025%, and nickel - 0.20%. The project will be implemented drawing on the best standards applied in the mining and metallurgical industry as well as sustainable development principles.
The Project Financing Factory provides for financing of projects on the “80 to 20” syndication principle, with 20% being the project initiator’s own funds and 80% - borrowed funds syndicated through tranches to minimise risks of project participants.
RUSSIAN PLATINUM AND NORNICKEL AGREE ON PARTNERSHIP IN NORILSK INDUSTRIAL DISTRICT
Russian Platinum and Nornickel will continue to cooperate in the development of deposits in the Norilsk Industrial District. The companies agreed on an operational partnership to develop the promising Chernogorskoye field.
As reported in March 2020, the managers of Nornickel and Russian Platinum have held a series of negotiations on reshaping their partnership and considered various opportunities to support the projects of Russian Platinum and its potential partners. These negotiations resulted in the signing by Russian Platinum and Nornickel of an operational partnership agreement today, on July 16, 2020.
According to the agreement, Nornickel will provide to Russian Platinum, on market terms, the access to its infrastructure in the Norilsk Industrial District through long-term service contracts on the supply of electricity and other resources, as well as the right to use its logistics infrastructure and facilities. In addition, the parties have agreed that Nornickel will purchase the products produced from the Chernogorskoye field, for which a separate long-term off take agreement will be signed. The relevant binding contracts are planned to be concluded before the end of the Q1 2021 subject to obtaining of all the necessary corporate approvals.
“Nornickel welcomes a long-term strategic partnership with Russian Platinum. The cooperation of these two companies in this new format will be an impetus for the development of the Norilsk industrial region; it will also provide the platinum market with the necessary volume of scarce metals,” said Sergey Dubovitsky, Nornickel’s Senior VP of Strategy, Logistics, Resource Support.
“Russian Platinum aims to create a new large production complex in the Norilsk Industrial District, the first stage of which will entail the construction of the Chernogorskoye mining and processing complex. A strategic partnership with Nornickel will allow us to launch the project on a tight schedule and step up our work,” said Russian Platinum CEO Evgeny Vorobeichik.
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