Foreign investors interested in Afrikanda rare earth metal deposit in Russia's Mumansk region - dep governor

MURMANSK. Oct 29 (Interfax) - Foreign investors are showing interest in the project to develop the Central Section of the Afrikanda rare earth metal deposit in Russia's Murmansk region, Deputy Governor and Minister of Arctic Development and Regional Economy Svetlana Panfilova told Interfax on Thursday.

Work is underway to provide infrastructure support and attract investment, she said.

"There's a lot of interest in this deposit, including from various foreign partners. The project was discussed, for example, at the INNOPROM.India event in New Delhi, hosted by the Russian Industry and Trade Ministry," Panfilova said.

Andrei Trenin, head of project operator JSC Arkmineral-Resource, told Interfax earlier that the contractor had completed the design of a perovskite-titanomagnetite ore processing plant for the development of the Central Section of the Afrikanda deposit.

The first phase of the project involves building an open pit mine, chemical-metallurgical complex, tailings storage facility and related infrastructure on the same industrial site.

Arkmineral-Resource won the auction held by Sevzapnedra in 2020 for the right to conduct geological exploration, prospecting and mining of perovskite-titanomagnetite ores at the central section of the Afrikanda rare earth metals deposit. Probable P1 resources are estimated at 70.7 million tonnes of ore, including 6.7 million tonnes of titanium dioxide (in perovskite). Probable P2 resources of niobium oxide (Nb2O5) are estimated at 108,900 tonnes, and for other associated minerals at 345,800 tonnes.

The company plans to produce perovskite concentrate, titanium dioxide, rare earth concentrate and pentoxides of niobium and tantalum.

Estimated project capex is 28.3 billion rubles. Arkmineral-Resource plans to raise project financing, possibly from VEB.RF.