JOHANNESBURG (miningweekly.com) – The Russian federal commission on suboil use, Rosnedra, has completed its review of the Monchetundra application, approving a draft of the mining permit for the platinum and palladium project on the Kola Peninsula, London-listed Eurasia reported on Friday.

The application for a mining permit was finalised in the fourth quarter of last year and submitted to Rosnedra.

The documentation has now been forwarded to the Ministry for Defence and Federal Security Service for their approval. Once approved, early stage operations will be able to start.

“We are pleased with this result and the efficiency of the officials at Rosnedra in processing the application. The experience of our staff in Russia, gained from successfully processing a similar mining permit for our West Kytlim project has proven invaluable,” commented executive chairperson Christian Schaffalitzky.

Monchetundra is a major platinum group metals (PGM) and base metals project with State approved reserves and resources of two-million ounces of palladium equivalent of PGM, with additional base metal and gold credits.  A discovery certificate, guaranteeing mining rights was issued to the company in July last year.

Meanwhile, an engineering, procurement, construction and financing contract to develop the mine at Monchetundra is already in place with Chinese State-owned Sinosteel. The contract provides for Sinosteel to undertake the mine and processing plant construction and commissioning on a turnkey, commercial arms-length basis.

Eurasia said that discussions continued with other third-party service providers regarding the running of the mine at Monchetundra.

“The company hopes to emulate the contract mining arrangement utilised at West Kytlim by contracting the mining operation to a reputable international specialist company with experience in Russia, while maintaining control of the project for a percentage of gross revenue.”