Name of the Project
Kun-Manie nickel/copper sulphide project.

Location
Amur Oblast, of the Russian Federation.

Project Owner/s
Bering Metals. Amur Minerals announced on March 6, 2023, that it, together with its wholly owned subsidiary Irosta Trading, had completed the previously announced sale of 100% of its interest in Irosta’s wholly owned subsidiary, AO Kun-Manie to Russian incorporated company Bering Metals for $35-million.

Project Description
The project has a total Joint Ore Reserve Committee- (Jorc-) compliant mineral resource estimated at 155.1-million tonnes with a nickel equivalent grade of 1.02%, equating to 1.58-million equivalent tonnes of nickel.

A prefeasibility study (PFS) completed by Amur Minerals in 2019 proposed two operational scenarios for the project, both of which included:

• the construction and operation of all facilities required to mine and process six-million tonnes of ore a year;

• a 338-km-long access road linking the mine site to the Baikal Amur rail line, allowing for resupply and concentrate delivery from the mine site;

• the supporting rail station;

• the shipment of saleable product to the Port of Vladivostok; and

• incumbent offtake agreement considerations.

The study established that the project was technically and economically viable for both production scenarios.

According to the PFS the base case scenario, or toll smelt option, represented the quickest and lowest initial capital-cost investment pathway to revenue generation and comprised the sale of concentrate (freight-on-board Port of Vladivostok) to a buyer based on typical nickel industry offtake net smelter return schedules.

Payable nickel for the toll smelt option was projected to be 24 306 t/y.

The second scenario used the same opera­tional considerations used in the toll smelt option; however, it included the addition of an AMC-constructed and -operated electric furnace/flash smelter at AMC’s BAM rail station.

This owner-operated facility was planned to treat the sulphide concentrate generating a low-grade matte, which would be shipped to the Port of Vladivostok. This furnace/flash smelter option included the consideration of typical intermediate nickel product offtake terms.

The furnace/flash smelter option had a similar lead time to revenue generation, although its initial capital expenditure was higher than that of the toll smelt option.

Payable nickel, and credits for copper, cobalt, platinum and palladium for the furnace/flash smelter option was expected to average 29 155 nickel equivalent tonnes.

Production was planned to be mined from four openpit operations and one underground operation. Subsequent to a three-year construction period, production of six-million tonnes a year was planned, covering a 15-year production life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
According the previously completed PFS, the toll smelt option had a net present value (NPV), at a 10% discount rate, of $614.5-million and an internal rate of return (IRR) of 29.3%. The furnace/flash smelter option had an NPV, at a 10% discount rate, of $987.4-million and an IRR of 34.7%.

Both options had a payback of three years.

Capital Expenditure
Initial capital expenditure for the toll smelt option was estimated at $570.4-million, and for the furnace/flash smelter option $695-million.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
AMC, tel +7 4212 755615.