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

Location
Amur Oblast, of the Russian Federation.

Project Owner/s
Amur Minerals Corporation (AMC) .

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

A prefeasibility study has proposed two operational scenarios for the project, which both include:

• 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 the resupply of 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 has established that the project is technically and economically viable for both production scenarios.

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

Payable nickel for the TS option is projected to be 24 306 t/y.

The second scenario uses the same opera­tional considerations used in the TS option; however, it includes the addition of an AMC-constructed and -operated electric furnace/flash smelter (FFS) located at AMC’s BAM rail station.

This owner-operated facility is planned to treat the sulphide concentrate generating a low-grade matte (LGM), which will be shipped to the Port of Vladivostok. This FFS option includes consideration of typical intermediate nickel product offtake terms.

The FFS option has a similar lead time to revenue generation, although its initial capital expenditure is higher than that of the TS option.

The LGM product is expected to produce substantially increased revenues derived from credits related to the recovery of by-product metals not available to the TS option. Payable nickel, plus credits for copper, cobalt, platinum and palladium, for the FFS option will average 29 155 nickel equivalent tonnes.

Production is 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 is planned covering a 15-year production life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The TS option has 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 FFS option has an NPV, at a 10% discount rate, of $987.4-million and an IRR of 34.7%.

Both options have a payback of three years.

Capital Expenditure
Initial capital expenditure for the TS option is estimated at $570.4-million and for the FFS option $695-million.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

On Budget and on Time?
Not stated.

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