Development Projects
Polymetal's development in the mid-term will depend on two factors: the second generation of assets and new production capacity at the Albazino, Kubaka, Voro and Dukat deposits.
Over the course of 2007-2008 the Company implemented investment projects to expand production capacity at the Omsukchan Processing Plant at the Dukat deposit and at the Voro deposit's plant.
In 2008, virtually all work required to boost production capacity at the CIP plant to 900 Ktpa was completed.
In 2008, the project to increase Dukat’s production capacity to 1.5 Mtpa of ore moved into its final stage. Production will be increased by mining the deposit’s flanks and by introducing high-grade ore from the recently acquired Goltsovoye deposit.
The flagship Albazino-Amursk project in the Khabarovsk Territory involves the development of a gold mine and a flotation concentrator at Albazino and the construction of a POX plant in Amursk. The preparation work to begin the construction of a new facility at Albazino is nearly complete and we anticipate that this site will be producing gold by 2010. In 2009 Polymetal announces acquisition of Mayskoye gold deposit in consortium with a group of Russian investors. Processing Mayskoye concentrate at Amursk will validate the Company’s fundamental strategic idea of making Amursk the processing hub for refractory gold concentrates from all over the Russian Far East.
Polymetal expect that the newly acquired Kubaka deposit will bring its gold processing plant online within the next three years. In April 2009, Polymetal agreed to acquire Sopka Kvartsevaya, which is approximately 180 km to Kubaka. The proposed acquisition achieves a number of strategic objectives:
- It provides an additional substantial source of high-grade feed to the existing Kubaka processing plant. It will also contribute to significantly increased production at low capital and operating costs.
- It supports the development of Kubaka as a regional processing hub with multiple feed sources (Birkachan, Oroch, Sopka, Dalniy) and substantial technological flexibility. The addition of a new source of feed is also expected to improve the overall economics of the mill's operation.
- It consolidates a portfolio of land holdings and unique transportation infrastructure in the east of the Magadan region with numerous highly prospective epithermal gold-silver ore occurrences.
We continue to implement our growth program in the face of financial crisis. Our investment already led to strong performance in gold and Polymetal remains firmly on track for further disciplined expansion.