Timir aims for profit at Tayezhny iron mine in 2017
MOSCOW. Feb 16 (Interfax) - Timir Mining and Metallurgical Company, a joint venture between steel group Evraz and diamond miner Alrosa , expects to see a net profit and positive cash flow in 2017 at its project to build the first phase of the Tayezhny iron mine and processing plant.
Mining is expected to begin in 2016 and production at Tayezhny is expected to reach design capacity of 3 million tonnes of ore per year in 2017, according to Evraz's presentation for a meeting of the government commission for investment projects at which the Timir project was approved. The cost of the first phase of the mine and plant is estimated at 11.9 billion rubles.
The company expects to earn the first net profit on the project, in the amount of 1.846 billion rubles, in 2017 and increase net profit to 1.986 billion rubles in 2025.
Timir also expects a positive cash flow at the project in 2017, amounting to 1.871 billion rubles. This figure is expected to grow to 2.167 billion rubles in 2025.
The net present value of the project grew to 6.155 billion rubles in 2014 from 884 million rubles a year earlier. The company forecasts that NPV will grow to 16.278 billion rubles in 2017 and to 20.934 billion rubles in 2025.
The Timir project involves the development of four iron ore deposits in Yakutia with reserves of about 5 billion tonnes and the construction of the Tayezhnoye and Tarynnakhskoye mines and processing plants with capacity of 20 million tonnes of ore annually. The project will cost upwards of 400 billion rubles.
