Norilsk Nickel, UMMC, Amur bid for southern part of Norilsk-1 deposit
MOSCOW. March 28 (Interfax) - MMC Norilsk Nickel , Urals Mining and Metallurgical Company (UMMC) and the Russian Platinum group's OJSC Artel Staratelei Amur have submitted bids to take part in the Federal Subsurface Resources Agency's (Rosnedra) tender for the rights to explore for and mine nickel, copper, cobalt and associated metals in the southern section of the Norilsk-1 deposit, one of the three largest deposits of sulphide copper and nickel ore on the Taimyr Peninsula.
A Norilsk Nickel spokesman told Interfax that the company's Polar Branch, which is developing Norilsk-1, has submitted a bid for the southern section of this deposit. Norilsk Nickel said earlier that, thanks to the developed transport and production infrastructure in this area, the company would only have to invest in the construction of mining facilities, but that the preparation of a feasibility study would require exploration of the property.
UMMC's OJSC Gaisky GOK and Artel Staratelei Amur have also submitted bids, a source close to the organization of the tender told Interfax.
The deadline for bids was Monday, and the tender will be held on June 5. On the same day, Rosnedra will hold a tender for the western flank of the Oktyabrskoye deposit.
UMMC, which in 2011 overtook Norilsk Nickel in copper production (380,000 tonnes opposed to 378,000 tonnes, of which Norilsk Nickel produced 363,460 tonnes in Russia), has submitted a bid for other deposits that Norilsk Nickel is interested in - nickel assets in the Voronezh Region. The Rosnedra tender for the Yelanskoye and Yekinskoye copper and nickel deposits will be held on May 15.
The starting price for the license to the southern section of Norilsk-1 is 4.4 billion rubles. The license fee for Oktyabrskoye west flank will be 22.5 million rubles. These funds must be paid as a deposit by May 14.
The bidders also have until May 14 to submit the technical and economic proposals for operations at the deposits.
Under the terms of the tender, the winner will have to begin exploration within 75 months of license registration, complete the construction of a mine within 12 years and bring it up to design capacity within 13 years.
Prime Minister Vladimir Putin signed instructions for Rosnedra to offer the licenses on January 27.
MMC Norilsk Nickel's Polar Branch develops both fields.
The southern section of Norilsk-1 is 20.2 square km in area and had 78.012 million tonnes of B+C1 and 578.1 million tonnes C2 ore listed on the state balance as of January 1, 2010. Estimated nickel reserves were 273,200 tonnes B+C1 and 578.1 million tonnes C2; copper - 378,100 tonnes B+C1 and 836,100 C2; cobalt - 12,718 tonnes (B+C1) and 23,244 C2; platinum-group metals 517.868 kg (B+C1) and 1,121.407 kg (C2); and gold 37.82 kg (C2).
The Oktyabrskoye west flank is 50 square km and holds probable P2 reserves of 9.594 million tonnes containing 74,900 tonnes nickel and 135,000 tonnes copper.
The Medvezhy Ruchei and Zapolyarny mines at Norilsk-1 produce disseminated ore, and the Oktyabrsky and Taimyrsky mines at the Oktyabrskoye field produce mainly rich ore with heightened non-ferrous and precious metal content; and cuprous ore with a higher content of copper in relation to nickel.
The ore grade in the southern section of Norilsk-1 is 0.41% to 2.67% Ni, and 0.57% to 5% Cu. Mining in the southern section of the deposit was considered unviable given the higher grade ore in the northern section of the deposit and the discovery of the Talnakh deposit.
Artel Staratelei Amur mines primary and alluvial gold, and alluvial platinum. The company, which has been developing the Konder alluvial platinum deposit since 1984, is the second largest platinum miner in Russia. It produced 3.771 tonnes of pure platinum in 2011, 35% more than a year earlier.