RMK interested in copper deposits next to Mikheyevskoye
CHELYABINSK. June 24 (Interfax) - Russkaya Mednaya Kompaniya (RMK), a major Russian copper miner that is planning to develop the Mikheyevskoye porphyry copper deposit in Chelyabinsk Region, is interested in also developing a number of small neighboring deposits, company president Vsevolod Levin told reporters.
"These are small satellites. Further exploration is required - perhaps years, in order to assess all resources. After this we will make all decisions. If the resources turn out to be on the level of the Mikheyevsky mine, then perhaps a second phase [of the mine] will appear here," Levin said.
"We are now conducting further exploration of the area. We have found additional small deposits close to the main deposit within a radius of 10 km. There are plans for them to be served by the same mining and processing complex," Chelyabinsk Region Governor Mikhail Yurevich told reporters.
RMK has now invested 20 billion rubles of the 26 billion rubles earmarked for the construction of the Mikheyevsky mine and processing plant, and construction is 75% completed, Levin said.
He said that despite the relatively low grade ore RMK expects to produce copper concentrate with 22% metal content thanks to the scale of the project and modern technology.
The Mikheyevsky mine and plant will operate for 20-25 years, Levin said.
The Mikheyevskoye deposit is one of Russia's largest and has been included by international consulting group CRU among the world's 50 largest copper deposits. The deposit has proven reserves of 469 million tonnes of ore with an average grade of 0.45% Cu; it therefore holds more than 1.5 million tonnes of copper.
RMK plans to increase production of copper to 350,000 tonnes in the cathode equivalent by 2016 from 170,000 tonnes in 2011. RMK intends to achieve this dramatic growth by building mining and processing complexes at the Mikheyevskoye and Tominskoye porphyry copper deposits in the Chelyabinsk Region.
RMK, Russia's third biggest copper producer, controls 14% of the market for copper cathodes and 24% of the country's market for copper feedstock.