Name of the Project
Baimskaya copper project.

Location
Chukotka, in Russia.

Project Owner/s
KAZ Minerals.

Project Description
Baimskaya is one of the world’s most significant undeveloped copper assets, with the potential to become a large-scale, low-cost, openpit copper mine.

The project is expected to have an ore processing capacity of 70-million tonnes a year. Life-of-mine copper and gold processing grades are estimated at 0.47% copper and 0.27 g/t gold respectively.

A bankable feasibility study (BFS) is being prepared, with an initial mine life of about 20 years based on Joint Ore Reserves Committee-compliant measured and indicated resources. However, recent drilling indicates potential for the mine life to be extended by about five years.

The construction plan for the processing plant will ramp up the two lines in consecutive phases, about 12 to 18 months apart, with about 5% of the capital budget expected to be incurred after production starts from the first line.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The capital construction budget is estimated at $8-billion.

Planned Start/End Date
The Baimskaya project is expected to start production by the end of 2027.

Latest Developments
The results of the BFS are expected to be completed in the first half of 2021.

Meanwhile, the Ministry for the Development of the Russian Far East and Arctic has submitted a multiparty complex development plan (CDP) for new infrastructure in the Chukotka region for the Prime Minister of the Russian Federation’s approval.

The CDP incorporates infrastructure to be used by KAZ Minerals for the Baimskaya project, including power, port and road.

A new liquefied natural gas power plant is proposed to be built at Cape Nagloynyn, in Chaunskaya Bay, for startup in 2026. The CDP also includes the investigation of an alternative nuclear power station option at the same location. The regional government of Chukotka is to finance and construct power lines from Cape Nagloynyn to the Baimskaya project site through Bilibino by 2026.

The Russian government will construct sections of a new port facility at Cape Nagloynyn, to be completed by 2026, including dredging and facilities for the power plant. KAZ Minerals will be responsible for arranging the financing and construction of other sections of the port, including electrical infrastructure, port equipment and accommodation. The new port will receive supplies for the operating phase of the Baimskaya project while serving as the export route for copper concentrate to international markets.

A 428 km permanent road linking the Baimskaya site to the new port has been split into two sections, which are equal in length. The first section, from Baimskaya to Bilibino, will be financed and built by KAZ Minerals by 2024. The financing of the second section of the road, from Bilibino to Cape Nagloynyn, which is expected to have other users, remains under discussion.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
KAZ Minerals, +44 207 901 7800 or email info@kazminerals.com.