Ministry for Development of Russian Far East will provide Polyus with subsidies for Natalka

02 Sep 2016
The Ministry for Development of Russian Far East and UK Polyus have signed a grant agreement on the construction of mining and processing enterprise on the basis of Natalka deposit in the Magadan region, according to RIA Novosti report from the signing ceremony. The capacity of the enterprise will be more than 13 tons of gold per year. The total investment in the project amounts to 98.4 billion rubles, of which the amount of public infrastructure support is 9.9 billion. More than 1,900 jobs will be created. PAO Polyus plans to complete the construction of mineral processing plantat the Natalka deposit by May 2019. A part of the project is the construction of 220 kV high-voltage line Ust-Omchug - Omchak Novaya and connection to the existing grid of the installed 220 kV line Orotukan - Palatka - Tsentralnaya. Under the new agreement, the term of completion of the design and estimate documentation and the state examination on the object were moved from May to August 2016. The launch of pre-construction pareparation is scheduled for October 2016. In February 2016, Prime Minister Dmitry Medvedev signed three decrees on state support of investment projects in the Far East, including the allocation of 9.9 billion rubles from the budget for construction of 135 kilometers of transmission lines Ust-Omchug-Omchak within the project of development of Natalka . It is assumed that Polyus’s investment in the project will amount to 88.5 billion rubles. The proven and estimated ore reserves at the Natalka deposit are estimated at 319 million tonnes at a gold grade of 1.6 g/t, which corresponds to the gold reserves in the amount of 16.3 million ounces (507 tonnes). Measured, indicated and inferred mineral resources of the deposit are estimated at 777 million tonnes at a content of 1.5 g/t, which corresponds to the resources of 36.8 million ounces.
Source: Uncommercial joint ownership "Trans-regional Association  of precious metals producers"