Total investment in the development of Russia's largest and the world's third largest copper deposit Udokan (reserves - 1.4 billion tons of copper ore) will be 238 billion rubles. ($ 3.7 billion). This follows from the data bank, which leads the Ministry of Environment in a letter to the Ministry of Economic Development ( "Vedomosti" familiar with the document). These funds attributable to shareholders "Metalloinvest" Baikal Mining Company (BGK) will build a road to Udokan, power lines, mining and processing plant 12 million tons of ore per year. Which route is planned to build - by road or rail, - the letter does not say. Two people close to BGK and one of the contractors of the company, confirmed the "Vedomosti" estimate of the costs. One of them indicates that it costs only a first field development stage.
Previously, "Interfax" referring to the letter of the largest co-owner "Metalloinvest" Alisher Usmanov, Russian President Vladimir Putin on June 2015 passed, that the investment in infrastructure construction and the first phase of Udokan will be $ 2.1 billion. The entire project is estimated at $ 5 billion, it follows from last year's presentation of BGK. Thus, investments in the development of the first phase increased by 76%. Project assessments are an international engineering company Fluor with the participation of SRK Consulting and Knight Piesold, said at BGK site.
Finding a partner
Option to buy 25% BGK have "Rostec". When will the deal, says the representative of the state corporation. BGK's shareholders are also looking for a strategic investor. In 2014-2015 gg. "Metalloinvest" negotiated with the Chinese fund hopu, but he chose the project, "Norilsk Nickel" in the construction Bystrinsky GOK, where the infrastructure has been built already.
The representative of the engineering company to questions "Vedomosti" did not respond, and the representative of BGK notes that "238 billion rubles. They include both capital costs - $ 2.1 billion (. 136 billion rubles at the current rate), and additionally incurred (which, does not specify -. "Vedomosti"), as well as, the rate of inflation and the exchange rate set by the VEB for internal use. " How different now estimate the cost of the entire project, the representative says BGK.
Details of Udokan leading MEP: BGK no later than February 2019 must submit a technical project Udokan, even after four years must earn first deposit all (12 million tonnes per year), and the total capacity should reach 36 million tons of ore per year. infrastructure, as well as metallurgical and electrolytic production for release at least 474,000 tonnes of copper cathode per year and 62 700 t of copper rod (it is included in the second stage of Udokan development) should be built next to the mine. How much money do you need to implement the second part of the project, and in what time frame, does not inform the Ministry of Environment.
Natural Resources Ministry spokesman declined to comment, and the Economic Development Ministry official said that the agency has no information about the increase of the cost of the project than originally planned.
Of 238 billion rubles. about 35-40 billion rubles. You have to spend on technology and career development, about 130 billion rubles. - The construction of processing plant, 10-15 bln. - For the construction of transmission lines to the nearest substation in the village of Chara, says director of corporate ratings ACRA Maxim Khudalov. The road to the field can do another 5 billion rubles. and 30-40 bln. You will need to spend on the miners' village. Taking into account the cost of unforeseen expenses figures roughly agree, he says.
In the first phase of BGK will receive copper concentrate with a copper content of 45%, while the cost of copper is about $ 2500 per 1 ton, said the director of metallurgy and mining Prosperity Capital Management Nick Sosnowski. At the current price of copper - $ 5800 per 1 ton - payment for concentrate treatment and refining of metals (TC \ RC) can be $ 400 per 1 ton, another $ 200-300 to 1 ton the company will have to pay for delivery of the concentrate, in which case the net proceeds will be about $ 4900 per 1 ton and the profit - about $ 2,400. This gives a good operating margin - 40-50%. However, the payback of the project will very much depend on the final capital cost, which can grow more than once or twice.
But the question of energy supply is acute: need for Udokan power of 450 MW substation in Char after modernization can provide only 176 MW, says Khudalov. Part of the energy infrastructure for modernization of BAM and Transsib can build FSK was originally planned that the company might build five facilities worth 57 billion rubles., Wrote, "Interfax". The investment project includes the construction costs of power grid infrastructure to provide electricity Udokansky GOK, a spokesman FSK.