Tag Archives: Christian Schaffalitzky

Eurasia secures Sinosteel EPC finance package for Monchetundra palladium project

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Eurasia Mining says it has signed an engineering, procurement and construction (EPC) contract, with an associated mine finance package, for its Monchetundra PGM-gold-copper-nickel project, in Russia.

The contract with China’s Sinosteel follows ongoing discussions between the two parties, which have been taking place since issue of the mining permit for a circa-2 Moz (two platinum group metals and gold) deposit in November 2018.

Monchetundra has 1.9 Moz of palladium-led reserves and resources with platinum, gold, copper and nickel.

Sinosteel said: “We are delighted that Terskaya Mining Company, controlled by Eurasia Mining plc, has received the final mining permit for the Monchetundra project. We look forward to working with CKE (Central Kola Expedition – a contractor), TGK (Terskaya Gornaya Kompany) and Eurasia, to commence the EPC and develop the mine and plant at this exciting palladium, platinum, copper and nickel project.”

Christian Schaffalitzky, Chairman at Eurasia, said: “We are delighted to advance the Monchetundra project. The details include not only the engineering components, but also the financing and legal documentation. We will be busy over the coming months developing our plans with Sinosteel for the mine’s start up and expected move towards production.

CKE, Eurasia’s long standing working partner at Monchetundra, were recently awarded and have now commenced work on a detailed project report, required to be submitted and approved within one year of the issue of the mining permit. This contract was awarded to CKE by Eurasia’s subsidiary TGK.

Eurasia said: “The report will include an outline of the further geotechnical, hydrogeological, metallurgical and resource and reserve base work required as part of the broader mine development plan. The report is a statutory requirement and is on track to be completed and approved.”

The ground works and other studies detailed within the report will then contribute to a more detailed feasibility study of permanent conditions and a revised reserves statement made on the basis of the existing feasibility study and the reserves report already approved by the state.

“It is Eurasia’s intention to fast track the above and to run them in parallel with further mine studies and programmes as outlined in the EPC contract with Sinosteel,” the company said.

The Sinosteel EPC financing covers 85% (or $149.6 million) of a total contract value of $176 million. A $50 million sub-contract is specified within the contract and is assigned to Eurasia’s 80% subsidiary TGK, or a sub-contractor of its choosing, for engineering and pit development works in advance of mining.

Eurasia and Uralmetmash agree on West Kytlim PGM-gold mining contract

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Eurasia Mining has signed a mining contract for the 2019 season at its West Kytlim platinum, palladium, rhodium, iridium and gold mine in the Ural mountains of Russia.

Kosvinsky Kamen (KK), Eurasia’s subsidiary, and Uralmetmash (formerly Techstroy) have signed a pact that will see the latter carry out mining of platinum group metals and gold at West Kytlim.
Mining at West Kytlim is seasonal as the alluvial process relies heavily on running water. Work normally commences as the snow melts on site in late March or early April and proceeds until November.

The directors of Techstroy, the contractor employed at the West Kytlim mine for the 2018 season which achieved production well in excess of target (a total of 165 kg raw platinum against a targeted 100 kg), registered a new company, Uralmetmash, as a special purpose vehicle to focus on the West Kytlim.

Eurasia said the roles and responsibilities of each of the parties shall remain largely as before, with Uralmetmash responsible for pit development, mining, ore trucking, washing and disintegration, and KK responsible for concentrate upgrade, shipment of mine product and distribution of metal sales revenues.

The London-listed mining company said Uralmetmash intended to move on site immediately to prepare for mining, to include stripping of overburden and stockpiling of ore in preparation for washing, which can commence once the seasonal thaw is underway. The thaw can be expected sometime in April 2019.

The work will continue initially at the Kluchiki area, where work ended on schedule in November.

As part of the deal with Uralmetmash, the platinum revenues will be split on a 65%/35% basis, in favour of the contractor.

In the meantime, the refinery contract between KK and the Urals precious metal refinery has also been renegotiated to include an extra percent payment on the LME platinum prices (now at 98% LME, from 97% in 2018).

Eurasia Mining Executive Chairman, Christian Schaffalitzky, said: “We are pleased to be working again with the team that proved so effective during 2018. They were a very efficient operator last year, with a zero accident record, and financially motivated to develop the asset in a sensible manner.

“Furthermore, we are looking at ways to improve metal recoveries, based on the measured efficiency of the existing process flowsheet. We look forward to updating shareholders on progress and also our longer term development strategy for the West Kytlim reserves and resources before the season commences.”

Eurasia and KK personnel continue to work on an enlarged exploration programme for West Kytlim, to include the recently approved Flanks exploration licence and ensure adequate reserves are available for future mining seasons.

Work on analysis of the previous mining season’s performance has commenced and a sampling programme has been outlined for the tailings of the 2018 season. This information will be inputted to proposed modifications to the current circuit, with the possible addition of a jig to recover finer raw platinum fractions. The addition of a hopper to better control the loading of gravels to the front of the circuit, and achieve a more constant flow of material into the trommel, is also expected to improve recoveries during the 2019 season.