Integrated development of Southern Yakutia


Aldansky, Neryungrinsky, Olekminsky regions of the Sakha Republic (Yakutia)

Project initiator

Government of the Sakha Republic (Yakutia), OAO Development of South Yakutia Corporation

Project characteristics

The project purpose – creation based on the principles of public-private partnership, of a new large industrial area with hydropower facilities, power grid and transportation infrastructures and a cluster of industrial production (electricity consumers guaranteed), mainly associated with advanced processing of available mineral resources (natural gas, apatite, coal, iron and uranium ores and other).

The project main tasks and expected utcomes:
  • removal of infrastructural constraints for socio-economic development of the area;
  • maintaining high economic growth rates in the country;
  • increase the economically active population in Yakutia – one of the most sparsely populated regions of the Russian Federation;
  • revenue growth and improving the quality of life;
  • increase the revenue base of the budgets of all levels;
  • development of strategic goods production;
  • development of new production of advanced processing of raw materials;
  • diversification of Russia’s exports (as an extension of its geography and increase the range of manufactured goods);
  • strengthening Russia’s geoplolitical position in Asian-Pacific Region.
Construction of industrial facilities:
  • Inaglinsky coal complex (2013)
  • Southern Yakutia metallurgy union (mining and processing of iron ore):
    • Tayozhny mining and processing plant (2016)
    • Tarynakhsky mining and processing plant (2016-2018)
  • Seligdar gas and chemical complex (mining and production of phosphor and complex fertilizers) (2019)
  • Yakutsk Gas Production Center (2020)
  • Elkon mining metallurgy plant (mining and processing of uranium) (2025)
  • Kankun HPS (2019-2025)
Construction of infrastructure facilities:
  • Railway infrastructure (about 270 km) (2012-2015):
    • Tommot-Elkon mining metallurgy plant,
    • Kosarevsky-Seligdar gas and chemical complex,
    • Tayozhnaya-Tayozhny mining and processing plant,
    • Chulbass-Inaglinsky coal complex,
    • Ikabiekan-Tarynakhsky mining and processing plant.
  • Motorway infrastructure (about 150 km) (2014):
    • Tommot-Elkon mining metallurgy plant,
    • Malyi Nimnyr- Kankun HPS.
  • Power supply network infrastructure (about 1200 km of HVL and seven substations) (2012-2015):
    • HVL “Kankun HPS-Neryungri” and substation “Neyungri”,
    • HVL “Kankun HPS-aldan” and substation “Aldan”,
    • power supply to Elkon Elkon mining metallurgy plant, Tarynakhsky and Tayozhny mining and processing plants, Seligdar gas and chemical complex and Inaglinsky coal complex.
Investment volume

According to the project framework, approved by the Governmnetal Commission on Investment Projects of national significance (protocol № 1 of October 10 2008), the total volume of investment in 2007 prices will make RUR 422,477 billion, including budget allotments of RF Investfund RUR 14,5 billion, funds of investors – RUR 308 billion.

Infrastructure available

Land has been allocated for industrial facilities (except Seligdarsky MCC and Yakutsk Gas Production Center).

Infrastructure required

Included in the project

Cost of project

Project planning:

RUR 10 064,4 m, (including RF Investfund – RUR 7 428,2 m, project co-investors  – RUR 2 636,2 m)

Construction (in 2007 prices, according to the Project framework):

RUR 413 602,1 m, (including RF Investfund – RUR 107 862,9 m, co-investors – RUR 305 739,2 m.)

Implementation period

I stage – project documentation development – 2009 – 2012.
II stage – construction works – 2012-2025.
IRR 16,8%
NPV RUR 83 265 m

Investor’s involvement

  • OOO Kolmar – Inaglinsky coal complex
  • OAO GMK Timir – Southern Yakutia metallurgy union
  • OAO Atomredmetzoloto, ZAO Elkon mining metallurgy plant – Elkon mining metallurgy plant
  • OAO Gazprom – Yakutsk Gas Production Center
  • AK ALROSA (OAO) – Seligdar gas and chemical complex
  • OAO RusHydro, OAO Southern Yakutia MPP – Kankun HPS.

State support of the I stage of the project implementation in terms of funding the design of infrastructure facilities is provided from the RF Investfund.

The state represented by the responsible officers secures design and construction of the following:

  • Railway infrastructure – Roszheldor,
  • Motorway infrastructure – Rosavtodor,
  • Poer supply network infrastructure, scheme of Kankun HPS poer output, development of Kankun HPS design estimates, participation in funding of Kankun HPS construction (dam construction) – Russian Energy Ministry,
  • Development of Elkon MMP design estimates – Rosatom.
Project documentation development:
  • RUR 2 636,2 m)
Construction (in 2007 prices, according to the project framework):
  • RUR 305 739,2 m.
Project detailedness

Designing of the project estimates is available and there is the State Expertise positive conclusion on Inaglinsky Coal Complex, road for the Elkonsky Mining and Metallurgical Plant and a railroad for Inaglinsky Coal Complex.

Designing of the project estimates on other transportation infrastructure facilities were sent for expertise.

The project documentation will be completed gradually during 2011-2012.

As of July 1 2011, state investments allocated for the project estimates made RUR 7,253 billion. The remaining volume of financing fro RF Investfund in 2011 will make RUR 175,152 million (including for electric power supply infrastructure facilities – RUR 100,6 million, railway infrastructure RUR 71 million, motorways – RUR 3,552 million).

The expenses of investors made RUR 16,952 billion, including RUR 687,3 million for desigs estimates within the Invetsment Agreement.

CEO of an organization implementing the project

Mikhail Lvovich BRUK - General director - ОАО South Yakutia Development Corporation


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