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
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

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