Construction of Elkonsky mining and smelting plant

  • Aldansky region, Sakha Republic (Yakutia)
Project initiator
  • OAO Atomredmetzoloto,
  • OAO Southern Yakutia Development Corporation
Project characteristics

Elkonsky mining and smelting plant includes:

  • five uranium mines, with ore mining capacity at 4.5 m t/year by underground mining;
  • a united radiometric enrichment plant or five separate enrichment plants, a hydrometallurgical plant with capacity at 5 ths t of uranium oxides a year;
  • a flotation plant for extraction of accompanying gold, silver and molybdenum components with capacity at 2,900 ths t/year;
  • maintenance facilities;
  • camps.
The enterprise production will be:
  • uranium oxide – 5,000 t,
  • gold – 1,570 kg,
  • silver – 17,900 kg.
Volume of investment

The project cost makes RUR 87,858 m in 2011 prices ($3,093.6 m), breaking down as follows:

  • investors' own funds - 28%,
  • investors' borrowed funds - 64%,
  • the Investment Fund of the RF - 8%.
Infrastructure available
  • Elkonsky horst deposits are located in Aldansky region of the Sakha Republic (Yakutia) 50 km east of the regional administrative center town of Aldan and 40 km south of the town of Tommot.
  • There is a railway and a motorway.
  • There is an airport in Aldan.
  • Electric power is supplied to Aldan and Tommot via high-voltage transmission line (HVL) 220 kV Neryungrinskaya GRES (city's regional power station) – Nizhny Kuranakh; HVL 110 (220) kV Nizhny Kuranakh – Tommot; HVL 110 kV Chulman GRES – Lebediny via 110 kV substations in settlements of Tommot and Lebediny. To enhance the electric infrastructure, there is being constructed 220 kV transmission line Neryungri GRES (City Regional Power Station) – Nizhny Kuranakh – Tommot – Maya (with NGRES – Nizhny Kuranakh 2 leg complete in 2010) to be complete in 2013; power is supplied from Neryungri GRES.
Infrastructure required
  • Railway Tommot station – Elkonsky MSP;
  • Motorway Tommot – Elkonsky MSP;
Cost of projec
  • Till 2016, project life cycle over 40 years
Implementation period
  • RUR 90,110 m
  • IRR 11.1%
  • NPV RUR 10,490 m
Payback period
  • 31.6 years
  • In near future Russia is to implement the Program on nuclear power development. One of the program’s tasks is to launch nuclear reactors with installed capacity up to 4gW. These reactors make potential market for the plant production.
Investor's involvement
  • OAO Atomredmetzoloto 100 %
Project detailedness
  • A part of Integrated Development of Southern Yakutia project. Design of project estimates are financed from the Russian Federation Investment Fund. The General designer – OAO VNIPIPT (Vniipromtechnologii) is working on the design in accordance with contract # 0190 of 15 Dec 2009 with the Client (OAO EMSP-Project).
    1. Geological and geophysical survey of the mine and ore processing facility sites complete;
    2. Basic technical solutions on the mining and ore processing facilities, as well as some infrastructure objects elaborated;
    3. Basic technical solutions on the ore processing and mining facilities, as well as the sulfuric acid plant elaborated.
  • At the moment, most of exploration activities stipulated by license agreements are complete, the reserves have significantly increased.
  • In 2010, there were drilled 94.669 ths running meters of exploration holes. Also, in the frame of pre-feasibility study, there was evaluated the raw material base of five Southern Elkon uranium-ore area in accordance with JORC international code.
  • After review of the project conditions feasibility study at the RF State Committee on Reserbes in 2011, ARMZ Uranium holding is going to bring the license agreement terms in compliance with the project documents.
  • Designing of Elkonsly MSP and the state expertise are expected in 2012.
CEO of an organization implementing the project
  • Oleg Vladimirovich VARVARA, General Director, ZAO Elkonsky MSP (established in 2007 for development of Elkonsky uranium-ore area, with 100% of shares owned by OAO Atomredmetzoloto)


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