General details of the project

  • Initiator of the project: Fund for Regional Development of the Republic of Buryatia
  • Сontact person: Botoev Konstantin
  • Post: Project manager in mineral resources sector
  • Telephone/Fax: +7 301 2 21-11-49, +7 301 2 21-11-50, +7 301 2 21-11-51
  • E-mail: info@frr-rb.ru
  • Address of the site: Republic of Buryatia, Eravninskiy District

 Basic details of the project

Gunduyskoe copper-barite deposit is located in Eravninskiy district of the Republic of Buryatia, 4 km south of the Ozerniy deposit. The reserves of C2 category were approved by the Minutes TCNR №54 of 2004: ore -12,757 th.tons, copper-74.9 th. tons at an average grade of 0.59%; barite -4,147 th. tons at an average grade of 32.5%. Method of mining - open. Construction period of mining and processing complex - 6 years. Putting into operation of the quarry is planned in 1.5 years after the construction start.

According to the IFC "Metropol" the investment costs for the construction of Gunduyskiy mining and processing complex will amount to 3.24 billion rubles. Since the load of the complex ⅔ will be covered by ore of the Turkulskoe deposit, and only ⅓ by ore of the Gunduyskoe deposit, so in calculating the amount of capital investments in the mining and processing complex will be distributed between the objects proportional to their annual production capacity. Accordingly, 1.08 billion rubles of capital investments is accounted for by Gunduyskoe deposit,  2.16 billion rubles of capital investments is accounted for by Turkulskoe deposit.

Specific production costs for production of 1 ton of ore in view of the projected capacity of the quarry and of deflator index of reduction of spending values to their current value amount to 200 rubles. (Adopted according to the State Reserves Register 2009). Specific costs for processing of 1 ton of ore in view of the projected capacity of mining and processing complex amount to 480 rubles. (Adopted by analogy with the Quartzitovaya Sopka deposite).

The price of copper concentrate is taken at the level of 24.93 thousand. rub. / t based on the average cost of copper on the London Metal Exchange on the date of calculation ($ 7277 / t) and the metal content of the commercial product. The price of barite concentrate brand KB-3 GOST 4682-84 (www.barit-tdooo.ru) - 3 thousand rubles / t..

The main technical and economic indicators and the results of the valuation of this deposit are shown in Table. 1.

Table. 1.

Technical and economic indicators of the Gunduyskoe deposit (Calculation 2011)

 

 

Data

Units ofmeasure

 Version

Basic

IRR 20%

Geological ore reserves (reduced to the category С1)

ths. tons

6 378,5

6 378,5

The average content of components in the geological ore reserves:

 

 

 

- copper

%

0,59

0,59

- barite (BaSO4)

%

32,5

32,5

Losses by the ore mining

%

3,0

3,0

Ore dilution by the mining

%

3,0

3,0

Operational ore reserves

ths. tons

6 378,5

6 378,5

The average content of components in the operational ore reserves:

 

 

 

- copper

%

0,57

0,57

- barite (BaSO4)

%

31,5

31,5

Production enterprise capacity for ore mining

ths. tons / year

300

300

Period of provision of operational reserves for enterprise

year

21

21

Period construction

year

6

6

Period calculation

year

20

20

Commercial production enterprise in volume terms:

 

 

 

- copper concentrate

ths. tons

115,8

126,4

- barite concentrate

ths. tons

1 403,3

1 530,9

Prices of commercial products:

 

 

 

- copper concentrate

thous. rub. / t.

24,93

26,95

- barite concentrate

thous. rub. / t.

3,0

3,28

Cost of commercial production (total)

million rub.

7 098

7 725

including: copper concentrate

million rub.

2 888

3 122

barite concentrate

million rub.

4 210

4 603

Сapital investments

million rub.

1 080

1 080

Operational costs

million rub.

3 829

3 869

Specific production costs per ton of ore

rub. / t.

680

680

Tax revenues

million rub.

1 661

1 819

Net present value (NPV)

million rub.

426

609

Profitability index (PI)

units

1,5

1,7

Capital investments payback period

year

12

10,5

Internal rate of return

%

17,4

20,0

Discounted revenue

million rub.

2 783

3 029

State NPV

million rub.

501

517

The fraction of state NPV in the discounted revenue

%

18,0

17,1

The value of differential rent

million rub.

560

789

The value of absolute rent (MET)

million rub.

463

503

The value of mining rent

million rub.

1 023

1 292

The fraction of mining rent in the recoverable value

%

36,8

42,7

Cadastral value - return of the deposit

 

million rub.

1 242

1 503

 

3. Explanatorynote

 

The Fund for Regional Development of the Republic of Buryatia is an organization authorized by the Government of the Republic of Buryatia in the field of application of government investment policy seeking to attract investments to the economy of the Republic, create favorable conditions for investors and business, and reduce the administrative barriers.

To create favorable conditions for investors the RB RDF provides support of investment project in the "One window" format, in other words provides for an investor the solution to all issues of cooperation with organizations, authorities and departments ranging from the processing of documents for a land and ending with the issuance of a building permission.