Baimsk project in Chukotka Autonomous Okrug claims for State subsidies

03 Jun 2016

The project of Baimsk ore zone development (Baimskaya Mining Company LLC is a part of Millhouse of Roman Abramovich), including energy infrastructure development, claims for state funding, Roman Kopin, Governor of Chukotka AO, said. “The project of Baimsk ore zone development is presented for selection as a priority, implemented in the Far East”, the head of Chukotka said at the concluding Board of the Ministry for development of Russian Far East. “It includes infrastructure construction project of Bilibino – Omsukchan Aerial Circuits, which virtually unites the two systems – at a certain level power shortages experiencing Chukotka and energy excessive Magadan”. The Governor announced that the first project documents for the energy infrastructure development will be ready by the middle of 2016. “The design has demonstrated the technical capability of the project implementation. Currently we continue working on its structuring and the provision of adequate funding by attracting private investment,” he added. According to him, the problem of energy supply is also urgent for projects of Klen field development (commissioning is scheduled for 2018) and Kekura (2018-2019), which are being planned to develop by Highland Gold Mining (32% belongs to Millhouse). “The efforts of the government focused on infrastructure facilitation of these projects in the first place, development of energy and transport,” Kopin said. It was reported previously that the cost of the project “Construction and Operation of Bilibino – Kekura – Peschanka – Omsukchan Aerial Circuits” measures 123 billion rubles. Dalenergomost LLC (part of Millhouse) this year will perform the justification of investment for the construction of power bridge – VL 220 kV Peschanka – Omolon – Omsukchan Aerial Circuits with length of more than 720 km, and coordinate the conclusions with RusGudro PJSC, RAO Energy Systems of the East PJSC, Madaganenergo PJSC and Chukotenergo JSC. As for the part of this project, the company expects to receive positive state expertise report for the first stages of projects of 220/110 kV Peschanka Electric Power Substation and 110 kV Bilibino – Kekura – Peschanka Aerial Circuits.


The construction of Baimsk mining and processing company is to start in 2018. The start of production is scheduled for 2022. The estimated capacity is 30 million tons of ore per year with production of no less than 5.6 tons of copper concentrate. General investments to project amount to more than 130 billion rubles. The development plan of Baimsk area has several stages – Kekura gold and silver development, construction and startup of Baimsk ore mining and processing company. Total resource potential of the area is estimated as 31.7 million tons of copper and about 2 thousand tons of gold. In July 2015, the government of the Russian Federation allowed Baimskaya Mining Company LLC to conduct exploration and production of non-ferrous and precious metal within Baimsk area of Chukotka AO, including Peschanka copper and porphyritic ores deposit, an area of federal-status mineral resources. Kekura and Baimskaya Mining Company projects are expected to obtain about 120 billion rubles of private investments. It is assumed that the field of Kekura and Klen HighlandGold will be producing to 7 and 3 tons annually respectively.

Sourсe: RIA News /Gold Mining Manufacturers' Reporter