Construction of Seligdar mining and chemical complex

Location

• Aldansky region of Sakha Republic (Yakutia).
• Seligdarskoe apatite deposit is situated on the hilly banks of the Seligdar River, rising above the valley at 180-240 m, with the slopes angle at 20°-30°.

Project initiator

• OAO Southern Yakutia Development Corporation.
• A part of Integrated Development of Southern Yakutia investment project.

Project characteristics

• Using apatites from Seligdar deposit, the mining and processing plant )MPP) will include a mine, a processing plant to produce apatite concentrate and a chemical plant to produce complex phosphor-magnesium fertilizers.
  • Apatite ore balance reserves – 1,228 m t of ore.
  • The mining and processing plant will produce apatite concentrate.
  • Capacity: 30 m t/year of ore, or 3.57 m t/year of concentrate with Р2О5 concentration at 35.5%, including marketable concentrate at 2.87 m t/year and concentrate for the chemical plant – 0.7 m t/year.
• The chemical plant will produce fused calcium-magnesium phosphates.
  • Capacity – 1.2 m t/year of marketable products.
• In addition, the plant will use mill tailings for production of hematite concentrate (about 600 ths t) and dolomite powder (up to 10 m t).
• Efficient use of the mined ore requires construction of a crushed stone plant, as a part of the complex. It will process the deposit overburdens, producing marketable crushed stone of three grades (up to 12,5 m t/year) and sand (1.2 m t/year).

Volume of investment

• RUR 46,950 m in 2007 prices ($1,653.7 m)

Infrastructure available

• A horizontal area of 16 ha. Such a site, suitable for a buffer-balancing storage with railway access and constructing a station is situated at the mine’s north-eastern end, 950-980 m level.
• The processing facility will be built on an industrial site 18 km south of Aldan, 9 km from Amur-Yakut railroad, and 8 km from a site near the mine at western and northern slopes of the elevation.

Infrastructure required

• Transport and power grid infrastructure of the plant will be constructed as part of Integrated Development of Sothern Yakutia project:
  • Railway Kosarevsky – Seligdarsky MCC.
  • HVL 220 kV, 7.5 km long with a 220 kV substation at the mine.

Cost of project

• RUR 46,950 m

IRR

• 22.80%

NPV

• RUR 15,600 m

Payback period

• 11.3 years

Project life cycle

• 50 years

Markets

• Internal consumption of the apatite concentrate produced (with processing of 286 ths t of concentrate on the plant a year) and fertilizers (designed capacity – 567.5 ths t a year) will make less than 20% of the entire production.
• Export to the Asian Pacific countries.

Investor’s involvement

• Public-private partnership.
• Investor funds are required for construction of Seligdarsky MCC and development of the apatite deposit.
• Transport and electric grid infrastructure will be financed form the Investment Fund of the Russian Federation.

Project detailedness

• A part of Integrated Development of Southern Yakutia investment project, feasibility report available.
• Designing works on Seligdar MCC are postponed until a managing user of Seligdar apatite deposit is determined.

CEO of an organization implementing the project

• Mikhail Lvovich BRUK,  General Director, OAO SYDC