OREANDA-NEWS. December 20, 2007. In December 2007 State Commission on Mineral Resources (Rosnedra) approved the reserves of Bugdainskoye deposit located in the Chita region and owned by Norilsk Nickel Group, reported the press-centre of Norilsk Nickel.

The reserves were approved in В+С1 categories as follows: ore – 436,2 million tonnes, molybdenum – 347,5 thousand tonnes, gold – 11,2 tonnes, silver – 193,5 tonnes, lead – 41,4 thousand tonnes; in С2 category: ore – 376,3 million tonnes, molybdenum – 252,2 thousand tonnes. As compared to previously approved estimation, ore and molybdenum reserves are up 40,9% and 44,5% respectively. Due to its huge reserves the deposit was classified as a major one. Multi-component Bugdainskoye ore contains such minerals as molybdenum, gold, silver and lead. Ore bodies are not deep and may be mined by highly cost-efficient open pit method. Expected ore output is up to 16 million tonnes per year.

Mineral reserves and resources of Bugdainskoye deposit have been also reviewed by independent international auditor Micon International Co Limited. Their results are generally consistent with the opinion of Vostokgeologiya (Norilsk Nickel’s prospecting and exploration subsidiary operating in the east of Russia). Micon’s estimations are as follows: indicated  reserves category – ore 383,7 million tonnes, molybdenum 335,8 thousand tonnes, gold 5 tonnes; inferred resources – ore 233,2 million tonnes, molybdenum – 175,5 thousand tonnes.

As General Director of MMC Norilsk Nickel Denis Morozov noticed, MMC Norilsk Nickel considers the results obtained for Bugdainskoye mineral deposit as another step towards the foundation of a world-class copper-molybdenum beneficiation plant in the Chita region. The new company’s raw material base will include a number of perspective territories located nearby: Bystrinskaya, Kultuminskaya, Lugokanskaya and Solonechenskoye. Norilsk Nickel Group has already obtained licenses for these deposits.

To support the development of these deposits, a local transport system will be set up in the framework of public-private partnership projects.

In accordance with Government Order No. 1708 and the Investment Project Transport Infrastructure for the Development of Mineral Resources in the South-East of Chita Region,  a new 375 km  long railroad line will be constructed with financing provided jointly by the state and Norilsk Nickel.

In 2008, Norilsk Nickel will contract the services of leading international engineering companies to perform designing and construction of Bystrinsky and Bugdainsky beneficiation plants, the first two operations to be built under the Investment Project. The retention of global engineering companies is to guarantee that future mines and ore processing plants will meet the highest international standards in terms of production technology and minimization of its hazardous impact (labor safety, health protection, environment preservation).

Norilsk Nickel has already completed preliminary negotiations with Bateman Engineering, WorleyParsons International, Hatch and other major engineering companies, and the signing of contracts on the first two mineral deposits is expected in the first half of 2008. Prior to signing of these contracts, research and exploration will continue at the Bystrinskoye deposit to provide data required for the planning of open pits and concentrator; at the Bugdainskoye deposit the ongoing process testing program will be continued to ensure the selection of optimal flow sheet for ore concentration.

Presentation of the Investment Project’s infrastructure aspect took place in Chita in the beginning of December. The Governor of the Chita region emphasized in his speech the importance of successful project implementation for the regional development, and pledged full-scale support to the project on behalf of local administration. The meeting was attended by regional authorities, heads of the Chita region districts, managers of the FSUC United Customer Group, who acts as developer and constructor of the railroad line, management of Inzhtransstroy Corporation LLC (general designer of the railroad), and representatives of Norilsk Nickel Group.
The project’s anticipated results include foundation of a major copper-molybdenum complex in the east of Russia, higher employment of population and substantial growth of economic potential in currently feebly developed Trans-Baikal territory. Geopolitical presence of the Russian Federation will be largely reinforced in the Asia-Pacific region and in the regions bordering on China and Mongolia.