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

Gurvunurskoe and North-Gurvunurskoe iron-ore deposits are located in Eravninskiy district of the Republic of Buryatia. Method of mining - open.

Geological ore reserves of C2 category amount to 96.5 million tons, Fe - 28,35 million tons. Construction period of enterprise – 3 years. Putting into operation of the quarry is planned in 2 years after the construction start.

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 300 rubles. (adopted by analogy with the Sorskiy mining and processing complex). Specific costs for processing of 1 ton of ore in view of the projected capacity of concentrating plant amount to 600 rubles. (adopted by analogy with the concentrating plant of Vadim-Alexandrovskoe deposite).

The value of general expenses is taken in the amount of 20% of the extraction and processing costs.

The price of iron-ore concentrate (according to the Metalltorg) is adopted at the level of 3 thousand rub. / 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 Gurvunurskoe and North-Gurvunurskoe iron-ore deposits

 

Data

Units of measure

Version

Basic

IRR 20%

Geological ore reserves (reduced to the category С1)

million t.

48,3

48,3

The average content of iron in the geological ore reserves:

%

29,4

29,4

Losses by the ore mining

%

5,0

5,0

Ore dilution by the mining

%

11,0

11,0

Operational ore reserves

million t.

51,5

51,5

The average content of iron in the operational ore reserves

%

26,1

26,1

Production enterprise capacity for ore mining

ths. tons / year

4 500

4 500

Period of provision of operational reserves for enterprise

year

11,4

11,4

Period construction

year

3

3

Period calculation

year

14

14

Commercial production enterprise in volume terms:

 

 

 

- iron-ore concentrate

million t.

24,2

24,2

Prices of commercial products:

rub. / t.

3 000

3 027

Cost of commercial production

million rub.

72 615

73 269

Сapital investments

million rub.

3 050

3 050

Operational costs

million rub.

62 156

62 187

Specific production costs per ton of ore

rub. / t.

1 080

1 080

Tax revenues

million rub.

11 852

12 008

Net present value (NPV)

million rub.

2 034

2 283

Profitability index (PI)

units

1,6

1,7

Capital investments payback period

year

9,2

8,8

Internal rate of return

%

19,1

20,0

Discounted revenue

million rub.

36 389

36 717

State NPV

million rub.

5 230

5 245

The fraction of state NPV in the discounted revenue

%

14,4

14,3

The value of differential rent

million rub.

2 520

2 831

The value of absolute rent (MET)

million rub.

3 486

3 517

The value of mining rent

million rub.

6 006

6 348

The fraction of mining rent in the recoverable value

%

16,5

17,3

Cadastral value - return of the deposit

 

million rub.

9 496

9 839

 

Explanatory note

 

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.