Russia, Kazakhstan could sign copper mining agreement
MOSCOW. Dec 16 (Interfax) - Russia and Kazakhstan could sign an inter-governmental agreement to mine the Veseneye-Aralchinskoye copper-pyrite field, which straddles the border between the two countries.
The Russian government has approved a draft agreement regarding activity in the trans-border region. The Russian Natural Resources Ministry will negotiate with Kazakhstan, after which the agreement will be signed.
The southern part of the copper deposit is in Kazakhstan's Aktobe region and the northern part in Russia's Orenburg region. Russkaya Mednaya Kompaniya (RMK) (Russian Copper Company, RCC) is mining the deposit.
Vesevolod Levin RMK's president, has said it would be hard to combine the two sections due to the absence of an inter-governmental agreement. Two RMK divisions are mining the deposit at present: LLC Aktubinskaya Copper Company on Kazakh territory and CJSC Ormet in Russia.
Kazakhstan's State Reserves Commission has listed the Veseneye-Aralchiskoye deposit's reserves at 196,800 tonnes Cu, 190,800 tonnes Zn, 1.27 tonnes Au and 100 tonnes Ag with a mine life lasting until 2036.
RCC controls 14% of the market for copper cathodes and 24% of the country's market for copper feedstock. It is capable of producing 200,000 tonnes of cathode copper and 200,000 tonnes of copper wire rod per year.