KAZ Minerals provides update on Baimskaya Project in co-op with Russia

Business Materials 25 February 2021 13:55 (UTC +04:00)
KAZ Minerals provides update on Baimskaya Project in co-op with Russia

BAKU, Azerbaijan, Feb. 25

By Nargiz Sadikhova - Trend:

Estimated total capital budget of the Baimskaya Project is close to $8 billion, Trend reports citing the KAZ Minerals company, which is the operator of the project.

The Baimskaya copper project in Chukotka (Russia) is one of the world’s most significant undeveloped copper assets with the potential to become a large scale, low cost, open pit copper mine.

The company said KAZ Minerals will take responsibility for a portion of infrastructure costs, estimated at around $600 million. Production is expected to commence by the end of 2027.

A Complex Development Plan (“CDP”) for new infrastructure in the Chukotka region has been submitted for approval by the Prime Minister of Russia.

“The capital expenditure guidance in 2021 of $175 million, primarily to fund the finalization of the Bankable Feasibility Study during the first half of 2021 and to continue detailed engineering and pioneer works to maintain the project schedule provides high level infrastructure plan in the Chukotka region and incorporates target dates for activities by the Russian government and private and state-owned businesses,” the company said.

The company said that LNG and nuclear power station options are also under investigation for the project and to be constructed at Cape Nagloynyn. Power lines from Cape Nagloynyn to Baimskaya will be financed and constructed by the government.

“Further agreements with the Russian government, expected to include significant take or pay contracts, will be required to secure the construction of the infrastructure for the project,” the company said.

The Russian Government will construct sections of a new port at Cape Nagloynyn, including dredging and power facilities. KAZ Minerals is responsible for arranging financing and construction of other port sections, including electrical infrastructure, port equipment and accommodation.

“New 428 km permanent road linking Baimskaya to the port at Cape Nagloynyn are also to be constructed. Baimskaya to Bilibino section is to be financed and constructed by KAZ Minerals , whereas Bilibino to Cape Nagloynyn section is expected to have other users, financing remains under discussion,” the company said.