Tag Archives: Polymetal

Polymetal pushes forward with Veduga gold project development

Environmental, Mineral project development, Mining equipment, Mining services, Precious metals, Sustainable mining, , , , , , , , ,

The Board of Polymetal has approved a $447 million investment in the Veduga gold project in the Krasnoyarsk Region of Russia based on the results of a recent prefeasibility study (PFS).

Veduga was discovered in 1977 and extensively explored between 1988 and 1996. Polymetal has been a partial owner of the property since 2006 with the original 50% stake acquired through the joint venture with AngloGold Ashanti. In this time, the mining of oxide ore has started, an initial NI-compliant reserve and resources estimate was prepared and open-pit mining of sulphide ore kicked off.

The latest investment will see Polymetal target 10 years of conventional open-pit mining of five open pits until 2031 (including pre-production stripping in 2022-2024), and 12 years of underground mining using a skip shaft for hauling from 2030 to 2041. First production is expected in the June quarter of 2025. This is based off a 4 Moz reserve base grading 3.9 g/t Au.

The prefeasibility study was based on a 2 Mt/y flotation concentrator with dry stacking of tailings. This would see flotation concentrate processed at the future POX-2, while volumes in excess of the facility’s capacity will be sold to third parties.

Veduga could also potentially become a source of feed for the future Pacific POX project, Polymetal said, adding that flowsheet development has been supported by extensive external and in-house metallurgical testing.

Average life of mine annual production is estimated at 200,000 oz of gold at all-in sustaining costs of $800-850/oz.

The project is expected to materially contribute to Polymetal’s carbon emission reduction targets, relying on hydro power to ensure relatively low emission intensity level of 405 kg CO2e/oz gold equivalent in 2025-2030 on average. This is well below the group’s target of 560 kg CO2e/oz of gold equivalent by 2030, it said.

Of the $447 million capital expenditure (inclusive of capitalised pre-stripping costs), $77 million is dedicated to a “post-launch” skip shaft and underground infrastructure construction in 2027-2029. Polymetal said further studies will be undertaken to evaluate alternative ore transportation options that could reduce the capital spending. It also said it plans to use exclusively battery-electric vehicles throughout the underground mine.

The extended open pit allows to shift underground development capital costs beyond the start-up capital expenditure, Polymetal added.

Polymetal currently owns a 59.4% stake in Veduga and holds a call option to increase its stake to 100% at a pre-determined price giving VTB Bank a fixed rate of return on initial investment. Following the final statutory clearance – expected in the June quarter of 2022 – Polymetal plans to fully consolidate the asset.

MTS, Ericsson deploy Russia’s first commercial 5G-ready private network at Polymetal’s Nezhda

Automation, Communications in mining, IoT, Mine operation news, Mining services, Mining software, Precious metals, , , , , , , , , , ,

Mobile TeleSystems PJSC, a leading provider of media and digital services, has completed the construction and launch of operations of what it says is Russia’s first commercial 5G-ready Private network at Polymetal International plc’s Nezhdaninskoye gold deposit in the Republic of Sakha (Yakutia).

The planned installation of the network, built on the Ericsson Dedicated Networks solution, was announced last year.

Within the project, MTS deployed a wireless network for Yuzhno-Verkhoyansk Mining Company JSC, affiliated with Polymetal. The network supports integrated mining dispatching systems, positioning, remote and automated control of various equipment, including excavators, drilling rigs, measuring devices, monitoring systems for remote equipment and video monitoring.

Within the project a full range of turnkey works and services has been implemented, including site inspection, network architecture design, supply and installation of radio base stations, network core and auxiliary equipment, network testing and commercial launch, MTS says. At the first stage, the network built on Ericsson solutions will operate in the LTE standard with the possibility of smooth and fast upgrade to 5G, according to the company.

The network is built on Ericsson Dedicated Networks solution, which complies with the 3GPP standards and includes a full-fledged carrier-grade network core. It supports 4G and 5G Non-Standalone (NSA) simultaneously and allows dual-mode core capability to support 5G New Radio Standalone (5G NR SA). An enterprise can use all the carrier grade packet network functions for its own mission-critical applications, MTS says.

Georgy Dzhabiev, Director, Digital Solutions, MTS, says: “We are grateful to our partner Polymetal for cooperation that resulted in the creation of the first commercial Private LTE network in Russia for remote monitoring and managing critical processes in difficult geographic and weather conditions. I am sure that the competence and experience of MTS in the implementation of unique network and IT solutions, digitalisation and automation of production processes will help our customers to increase their business efficiency and improve the working conditions.”

Alexander Laguta, Head of Information Technology and Communications department, Yakutsk branch of Polymetal, says: “The system is already showing its effectiveness and is ready to move to next stage of introducing innovative technologies in production. The Private 5G-ready network will significantly increase the speed of transferring large amounts of data and reduce the cost of maintaining the technological network. One of the first projects on the basis of this network will be launch of dispatching systems, remote control of drilling rigs and video monitoring.”

Alexander Romanov, Head of Private Networks, Ericsson Russia, says: “The Private Network is the backbone of critical communications infrastructure and the Industrial Internet of Things, not only in mining, but also in other industries with a high demand for seamless coverage, performance, security and reliability while supporting mission-critical business processes in a new digital reality.”

At the next stages of the project, the implementation of a dispatch radio communication system based on MC-PTT (Mission Critical Push-to-Talk) over LTE network is planned, along with integration with the internal telephone network of the enterprise.

Polymetal 2020 profits rise as it accelerates ESG efforts

Environmental, Mine operation news, Mineral processing, Mining finance, Mining safety, Power supply for mines, Precious metals, Sustainable mining, Water management, , , , , , , , , , , , , , , , ,

Polymetal recorded a strong set of financials in 2020, with its revenue, adjusted EBITDA and net earnings metrics all benefitting from higher production volumes and commodity prices.

Revenue increased by 28% year-on-year to $2.87 billion, adjusted EBITDA rose 57% to $1.69 billion and net earnings hit a record $1.09 billion in 2020.

The company’s 2020 gold-equivalent output amounted to 1.56 Moz, a 4% increase year-on-year and 4% above the original production guidance of 1.5 Moz. Strong contributions from its Kyzyl, Varvara and Albazino mines offset a planned grade decline at Voro, as well as lower production at Svetloye, the company said.

While production rose, the company’s greenhouse gas emissions intensity reduced by 4%, Polymetal said. It attributed this to energy efficiency initiatives, switching its mining fleet to electric vehicles, a shift from diesel to grid energy sources and green energy contracts.

Back in December, SMT Scharf AG signed an agreement with Polymetal to develop and produce battery-electric powered LHDs and mid-range underground trucks as prototypes for its gold and silver mines, with these units to be delivered to the company by October 2021.

Polymetal’s environmental, social and governance efforts did not stop there.

In 2020, the company invested $29 million at its Omolon hub in the Magadan region of Russia. This capital expenditure was mainly related to the construction of a dry tailings storage facility and engineering and preparatory works for a 2.5 MW solar plant (due to come online this year). This will be joined by another 5-10 MW solar facility at its Kyzyl operation (Kazakhstan) in 2022.

On its other tailings facilities, Polymetal said: “We operate eight tailings dams in Russia and Kazakhstan; each is rigorously monitored daily. We are confident that any emergency dam failure would have no impact on local communities and employees.

“We welcome the new Global Industry Standard on Tailings Management and have committed to achieving compliance in all operations by 2023.”

In addition to state authority inspections of these facilities, the company conducted an independent third-party audit of its Mayskoye (Chukotka, Russia) tailings site, which was carried out virtually, due to COVID-19 restrictions, by Knight Piésold Ltd. “To further improve tailings safety and minimise the risk of the possibility of dam failure, we are shifting towards dry stack storage methods,” it said.

“Such facilities are already in operation at our Amursk and Voro (pictured filter press) mines, and will be extended to Omolon (2021), Nezhda (2021), POX-2 (2022), Dukat (2024) and Veduga (2025).”

Polymetal and SMT Scharf sign underground electric vehicle MoU

Environmental, Mine operation news, Mining equipment, Mining services, Power supply for mines, Sustainable mining, , , , , , , , , ,

Polymetal and SMT Scharf have signed a Memorandum of Understanding (MoU) for a potential strategic cooperation in underground electric vehicles (EV) development in line with the miner’s climate strategy.

The MoU outlines that Polymetal and SMT will cooperate in the development, implementation and testing of zero-emission battery EVs. Initially, the collaboration is to be focused on mid-ranged LHDs and trucks, with potential involvement of drill rigs and utility vehicles in the future, Polymetal said.

IM understands Polymetal has previously tested RDH (now owned by Scharf under RDH-Scharf) battery-electric machines at some of its underground mines.

Two pairs of units (an LHD and truck) are going to be tested at Polymetal’s operations during the one-year trial with further collaborative re-design, signing of a distribution agreement and establishment of an after-sales support centre, Polymetal said, adding that the strategic cooperation is set to last for 10 years with an opportunity for further extension.

“The partnership with SMT grants us an easy access to customisable battery-electric vehicles which could positively contribute to our operating costs dynamics, greenhouse gas (GHG) emissions and personnel safety at underground mines,” Vitaly Savchenko, COO of Polymetal, said. “It fits well into our strategy to gradually involve EVs across the group’s operations and marks another step towards cutting carbon emissions by 5% in 2023.”

Polymetal’s GHG emissions from mining fleet and mobile machinery at the hubs with underground mines for 2019 were 334 Kt of CO2 equivalent, which is 12% of the group’s total emissions (Scope 1+ 2).