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

The deposit is located in Eravninskiy and Kizhinginskiy district of the Republic of Buryatia, 110 km east from the regional center - the Kizhinga village and 50 km south-west of the existing Egitinskiy fluorspar mine. 110 kV transmission line extends 38 km north-west of the deposit along the road through Uldurga village. Until the field has a forest road, which requires renovation.

Osenneye fluorspar deposit is studied on exploration and appraisal stage. Submitted fluorite deposits occurring in brecciated volcanic formations, controlled portion of the intersection of faults in two directions. On the deposit is identified four ore bodies, extending from 220 to 300 m. Capacity of the ore bodies varies from 1.5 to 40 m, averaging 10 m. Ores are represented by quartz-fluorite easily enrichable industrial type. The content of fluorspar in the ores ranges from 10 to 70%, averaging 26%. The complexity of the geological structure of the deposit belongs to the group III Classification of the State Reserves Committee of the Russian Federation.

In the author's assessment of the ore reserves of C2 category are 1,714 thousand tons, CaF2 - 442 thousand tons at a content of 25.74%; resources P1 - 355 thousand. tons of ore. Reserves and resources have not been approved, do not pass validation.

The deposit can be worked open pit ore enrichment on Egitinskiy factory. Enterprise construction period - 1.5 years. Annual production of fluorite ore - 50 thousand tons.

Investments during the creation of infrastructure and construction of mining enterprises - 10.8 million dollars USA (data 2011).

Specific production costs for production of 1 ton of ore are 796 rubles. (Adopted by analogy with Egitinskiy deposit). The scecific cost of processing 1 ton of ore is 496 rubles.

The price of fluorite concentrate brand PF-92 adopted at the level of 15.6 thousand rub. / tons according www.infogeo.ru.

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

Table. 1.

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

 

Data

Units of measure

Version

Basic

IRR 20%

Geological ore reserves (reduced to the category С1)

ths. tons

946

946

The average content of CaF 2 in geological ore reserves

%

25,74

25,74

Losses by the ore mining

%

3,0

3,0

Ore dilution by the mining

%

3,0

3,0

Operational ore reserves

ths. tons

946

946

The average content of

 of CaF 2 in the operational ore reserves:

%

24,97

24,97

Production enterprise capacity for ore mining

ths. tons / year

50

50

Period of provision of operational reserves for enterprise

year

19

19

Period construction

year

1,5

1,5

Period calculation

year

20

20

Commercial production enterprise in volume terms:

 

 

 

- Fluorite concentrate

ths. tons

179,7

179,7

Price of commercial products

thous. rub. / t.

15,60

17,36

Cost of commercial production

million rub.

2 804

3 120

Сapital investments

million rub.

340

340

Operational costs

million rub.

1 716

1 734

Specific production costs per ton of ore

rub. / t.

1 292

1 292

Tax revenues

million rub.

564

641

Net present value (NPV)

million rub.

147

252

Profitability index (PI)

units

1,4

1,7

Capital investments payback period

year

10,8

8,3

Internal rate of return

%

16,2

20,0

Discounted revenue

million rub.

1 229

1 368

State NPV

million rub.

192

200

The fraction of state NPV in the discounted revenue

%

15,6

14,6

The value of differential rent

million rub.

195

326

The value of absolute rent (MET)

million rub.

154

172

The value of mining rent

million rub.

349

498

The fraction of mining rent in the recoverable value

%

28,4

36,4

Cadastral value - return of the deposit

 

million rub.

455

601

 

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.