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 Ulzutuyskoe pyrite-polymetallic deposit is located in the Eravninskiy district of the Republic of Buryatia, 12 km north-east of the Ozernoe pyrite-polymetallic deposit and 30 km north of the road  Ulan-Ude – Chita, along the road passes 110 kV transmission line (Ulan-Ude - Bagdarin).

On the complexity of the geological structure the deposit refers to the group III of Classification of the SRC RF. Mining conditions of occurrence of ore bodies of the deposit allow to work the ore bodies by open method with a maximum depth of the quarry 120 m with stripping ratio of 1.7 - 4.8 m3 / t.

Ore processing of the deposit is advantageously carried out at the Ozernoe mining and processing complex. Ore washability of the deposit was studied in the laboratory enrichment of Irkutsk Polytechnic Institute. Under the scheme of the direct selective flotation is obtained zinc concentrate with a zinc content of 50.7% and lead concentrate with a lead content of 38.6%, at the extraction respectively 71.8% and 66.75% and at the yield 17.3% and 2.4 %.

The reserves of the deposit of C2 category (at cut-off grade of zinc - 1%) in the author's version, 1970 in four ore bodies are: ores - 12627.4 thousand tons, zinc - 431.2 thousand tons, lead - 64.9 thousand tons.

According to CHP 1987 with the output of the enterprise 550 thousand tons of ore is provided the annual output of zinc concentrate - 39147 tons, lead concentrate - 4631 tons at a content of zinc in zinc concentrate - 49.0%, lead in lead concentrate - 50% . According to the expert evaluation the cost of production of 1 ton of ore on the deposit is 250 rubles. Prices for lead and zinc are adopted according to the London Metal Exchange on the date of calculation.

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

Technical and economic indicators of the Ulzutuyskoe deposit

 

Data

Units ofmeasure

Version

Basic

IRR 20%

Geological ore reserves (reduced to the category С1)

ths. tons

6 945,07

6 945,07

The average metal content in geological ore reserves:

 

 

 

- lead

%

3,41

3,41

- zinc

%

0,51

0,51

Losses by the ore mining

%

6

6

Ore dilution by the mining

%

6

6

Operational ore reserves

ths. tons

6 945,07

6 945,07

The average metal content in operational ore reserves

 

 

 

- lead

%

3,21

3,21

- zinc

%

0,48

0,48

Production enterprise capacity for ore mining

ths. tons / year

550

550

Period of provision of operational reserves for enterprise

year

12,6

12,6

Period construction

year

3

3

Period calculation

year

15

15

Commercial production enterprise in volume terms:

 

 

 

- lead

ths. tons

33,55

33,55

- zinc

ths. tons

222,93

222,93

Prices of commercial products:

 

 

 

- lead

ths. rub. / t.

64,92

68,50

- zinc

ths. rub. / t.

58,11

61,38

Cost of commercial production (total)

million rub.

15 136

15 986

including: lead

million rub.

2 178

2 298

zinc

million rub.

12 958

13 688

Сapital investments

million rub.

450

450

Operational costs

million rub.

14 406

14 474

Specific production costs per ton of ore

rub. / t.

1 900

1 900

Tax revenues

million rub.

2 811

3 036

Net present value (NPV)

million rub.

2

306

Profitability index (PI)

units

1,0

1,7

Capital investments payback period

year

15

8,7

Internal rate of return

%

10,1

20,0

Discounted revenue

million rub.

7 376

7 790

State NPV

million rub.

1 347

1 380

The fraction of state NPV in the discounted revenue

%

18,3

17,7

The value of differential rent

million rub.

2

383

The value of absolute rent (MET)

million rub.

1 211

1 279

The value of mining rent

million rub.

1 213

1 662

The fraction of mining rent in the recoverable value

%

16,5

21,3

Cadastral value - return of the deposit

million rub.

1 939

2 386

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.