Polymetal could start underground mine at Kyzyl deposit in 2031, capex $200-250 mln

ASTANA. March 26 (Interfax) - Polymetal could start an underground mine at the Kyzyl deposit in Kazakhstan in 2031 with capex provisionally estimated at $200 million-$250 million, the gold and silver miner's CEO, Vitaly Nesis, told Interfax.

"We have already started front-end engineering and design. Mining work and stripping could begin in 2028 and production probably in 2031," Nesis said. "The figures are something like $200 million-$250 million, but we'll adjust this because we're still at the initial design stage, with detailed design yet to begin. And here you need to understand that this $200 million-$250 million will be spread over four to five years," he said.

Polymetal started the open pit at Kyzyl in 2018. Production came to 316 koz in 2023.

Polymetal remains the second biggest gold producer in Kazakhstan following the sale of its Russian business. The assets in Kazakhstan include the operating Kyzyl and Varvara mines as well as the Ertis POX development project. A consortium of investors from the Sultanate of Oman, led by the government-controlled Mercury Investments International fund, is Polymetal's biggest shareholder with 23.9%.