Ermakovskoe deposit

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Ermakovskoe deposit

The right to mine fluorine - beryllium ore at Ermakovskoe deposit in the Republic of Buryatia is provided according to UDE №13303 TE License issued on 4 October 2005 and valid until 2025.

Background information

The licensed area is located in Kizhinginsky district of the Republic of Buryatia, 46km from Bada railway station, Trans-Siberian main line, 180km from Ulan-Ude (asphalt and unsealed roads) and 7 km from Novo-Kizhinginsk industrial settlement with 2 000 population.
In 1979 the mine was put into operation. Open cut mining was carried out until 1989. Fluorine-beryllium ore reserves of Ermakovskoe deposit were approved by the USSR State Reserves Committee in 1970 (Protocol Nr 6099) in the amount of 1,640.8Kt of ore (C1+C2 category). 47% of on-balance reserves have been developed.

As of 01.01.2013 the deposit has 1,394Kt of ore on the State Reserves Committee balance sheet (C1+C2 category).

Target

To resume operations at Ermakovskoe deposit and start mining of remaining on-balance reserves.

Key tasks

  • To set up in Russia economically efficient production of Be products on the new technological, economic and organizational basis for the needs of strategic industries.
  • To promote technological and economical integration of the enterprises in Russia and Kazakhstan in the field of production and sales of Be products.
  • To contribute in economic and social development of Buryatia, mineral resources development and put life in Kizhinginsky district.

Strategy of the project

I stage – Open cut mining of 764Kt of reserves (С1 category).
II stage – Underground mining of remaining 630Kt of reserves (С2 category).

Basis for the project implementation

  • Technical Design Report “Construction of mining and processing enterprise” prepared by P.O.Box М-5703 company in 1972; the report obtained positive approval (№ PM/311) of the expertise department on 21 March 1973 and experts of the USSR State   Committee for Construction;
  • «Local Technical Design Report “Open pit construction at Ermakovskoe deposit” (review of the Technical Design Report 1972) prepared by P.O.Box М-5703 company in 1976;
  • «Documents and calculation of the reviewed open pit boundary, development of the underground mining scheme for the remaining reserves” prepared by P.O.Box М-5703 company in 1983;
  • Technical Design Report “Open cut mining of fluorine-beryllium ore of Ermakovskoe deposit during 2014-2013. Technical upgrading of the existing enterprise” prepared by GEOTEP scientific-industrial company in 2014; the report obtained positive approval  (02 ГР-14) of industrial safety experts and approval  of mineral resource protection experts (Protocol № 34/14-stp);
  • Initial permits (approved Mining Allotment certificate, approved Mining Development Plan 2014, etc.);
  • Executed Letter of Intent with regards to the project “Reproduction of complete cycle of Be production beginning from mining and processing (Russia) to the output of metal beryllium, bronze and alloys (Kazakhstan)” between East Siberian Metals Corporation, NefteKhimMash and Ulba Metallurgical Plant.

Key parameters

№№

Item

Unit

Value

1

Mineable reserves (open cut mining method)

Kt

844,4

2

Ore output

Kt

50

3

Average annual amount of overburden

Km3

390

4

Average stripping ratio

Km3

7.8

5

Guaranteed term of reserves development

years

17

6

Commercial products:
-Fluorite concentrate
-Beryllium concentrate

t
t

101328,0
69240,8

7

Investment costs

million RUB

369,1

8

Operating costs

million RUB

3955,5

9

Commercial product value

million RUB

4797,3

10

Unit cost

RUB/t

4685,0

11

Sales price:
-Fluorite concentrate
-Beryllium concentrate

RUB/t
RUB/t

12500
51000

12

Gross profit

million RUB

841,8

13

Net profit

million RUB

615,5

14

DNPV (5% discount rate)

million RUB

168,8

15

DNPV for the state ( 5% discount rate)

million RUB

388,8

16

Payback period of capital investments (undiscounted)

years

12

17

Discounted payback period of capital investments ( 5% discount rate)

years

13



Project significance

The project is of high national economic and social significance. Only at the mine 80 work places will be provided for people from the nearest settlements, also the project will provide funding of local and federal budgets.

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