General details of the project

Initiator of the project

Fund for Regional Development of the Republic of Buryatia

Сontact person

Botoev Konstantin Petrovich

Post

Project manager in mineral resources sector

Telephone

(3012) 45-50-46

Fax

(3012) 45-50-46

E-mail

fondreg@gmail.com

Web-site

invest-buryatia.ru

Address of the site

Republic of Buryatia, Muyskiy District

 

Basic details of the project

Mokhovoe tin deposit is located in the Muyskiy district of the Republic of Buryatia and is located 115 kilometers from the railway station Taksimo (BAM), with n. Taksimo connected by road class 3 (Taksimo - Irokinda) - 70 km and further technological road.

The deposit is represented by the 10th tubular and 2 lenticular bodies of magnetite-feldspar metasomatic rocks with cassiterite-chalcopyrite and magnetite-hematite mineralization. Ore composition essentially microcline. On the deposit is still at least 20 untested anomalies looking at identifying new ore bodies, in addition, given that the small size of the ore bodies, magnetic ore bodies identified to a depth of 50-60 m (maximum), the deposit can be "blind" body. Ore deposits of cassiterite-quartz. Deposit reserves refers to the average. Method of mining - open.

Enterprise construction period - 3 years. Entering the mine into operation is planned for the second year after the start of construction. The yield on a full design capacity is planned in 6 years after the beginning of deposit (as in passport of the investment project).

The reserves of deposit are approved by minutes SCC 1995 №124: ore C2 -1,105 thousand. Tons, tin -12.66 thousand tons at 1.15% content.

Resource potential:

Ore P1 - 1105 thousand. t

Tin - 12.66 thousand tons;

Ore P2 -308.5 thousand tons

Tin -5.53 thousand. tons.

Specific production costs for production of 1 ton of ore according to OOO "Vostokolovo" are 367 rubles. Specific unit costs of processing 1 ton of ore according to PF "Dal'olovo" are 1281 rubles.

The price of tin concentrate is done at the level of 34.7 thousand. rub. / t. based on the average cost of tin on the London Metal Exchange in the period of settlement and the metal content in the commercial product.

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 Mokhovoe deposit (Calculation 2011)

 

Data

Units of measure

Version

Basic

IRR 20%

Geological ore reserves (reduced to the category С1)

ths. tons

866

866

The average content of tin in geological ore reserves

%

1,15

1,15

Losses by the ore mining

%

5,1

5,1

Ore dilution by the mining

%

11,3

11,3

Operational ore reserves

ths. tons

926

926

The average content of tin in the operational ore reserves:

%

1,02

1,02

Production enterprise capacity for ore mining

ths. tons / year

300

300

Period of provision of operational reserves for enterprise

year

3

3

Period construction

year

3

3

Period calculation

year

8

8

Commercial production enterprise in volume terms:

 

 

 

- Tin concentrate

ths. tons

78

78

Price of tin concentrate

thous. rub. / t.

34,7

36,3

Cost of commercial production

million rub.

2 691

2 814

Сapital investments

million rub.

450

450

Operational costs

million rub.

2 191

2 201

Specific production costs per ton of ore

rub. / t.

1648

1648

Tax revenues

million rub.

514

546

Net present value (NPV)

million rub.

94

153

Profitability index (PI)

units

1,2

1,4

Capital investments payback period

year

7,5

7,2

Internal rate of return

%

16,4

20,0

Discounted revenue

million rub.

1 755

1 836

State NPV

million rub.

308

314

The fraction of state NPV in the discounted revenue

%

17,5

17,1

The value of differential rent

million rub.

82

156

The value of absolute rent (MET)

million rub.

215

225

The value of mining rent

million rub.

297

381

The fraction of mining rent in the recoverable value

%

16,9

20,8

Cadastral value - return of the deposit

 

million rub.

531

617

 

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.