Tag Archives: Russia

Kinross makes permanent exit plans for Russian gold operations

Kinross Gold, after making plans to suspend its operations in Russia at the start of the month, is now in exclusive negotiations with a third-party mining company regarding a potential sale of 100% of its assets in the country.

On March 2, the company said it was making plans to suspend its Russian operations following Russia’s ongoing military offensive in Ukraine. Both its Udinsk development project and Kupol mine (pictured) were part of this plan, which, while considering suspension, would focus on the safety and well-being of its more than 2,000 employees in addition to its obligations to manage and mitigate the mine’s environmental impact on an ongoing basis, it said.

Subject to this disclosure, the company has been developing a transition plan to divest its Russian assets.

Kinross said on March 29 it had received a number of unsolicited proposals regarding its Russian business and was now in exclusive negotiations with a third-party mining company regarding a potential sale of 100% of its assets in the country. Any such divesture or change of control would be subject to Russian government approval, it noted.

As part of the exclusivity agreement and to properly maintain assets pending a change of control, the company’s Russian subsidiaries are continuing to operate during the transition period. Kinross will also continue to manage and mitigate the environmental impacts of its operations. This includes overseeing monitoring systems and transporting industrial materials to the Kupol mine that are not permitted to remain at the port to maintain safety and regulatory compliance.

“Kinross will continue to prioritise the well-being of its more than 2,000 employees in the country as it develops its transition plan,” it said.

The parent company will not benefit financially from the operations while the transition plan is finalised, Kinross clarified, with current activities funded through resources already in-country, with no additional investment required by the parent company.

Kinross expects to treat its Russian business as an asset held for sale from an accounting perspective until a change of control is completed.

Kinross makes plans to suspend Russian operations

Kinross Gold is making plans to suspend its Russian operations following Russia’s ongoing military offensive in Ukraine.

The company, noting it was deeply concerned about the loss of life and destruction in Ukraine, expressed its sympathy and support for the people who are suffering because of the tragic situation.

Kinross announced a donation of $1 million to the Canadian Red Cross Ukraine Humanitarian Crisis Appeal to assist those people most in need, it said, adding it was hopeful of a peaceful and diplomatic solution in Ukraine.

Kinross said it was also suspending all activities at its Udinsk development project in Russia. The company is also in the process of suspending operations at its Kupol mine, with the focus on the safety and well-being of its more than 2,000 employees and in recognition of its obligations to manage and mitigate the mine’s environmental impact on an ongoing basis.

Kinross said it intended to adhere to all sanctions and legal restrictions that have, or will be, announced by relevant governments.

Metso Outotec ceases deliveries to Russia

Metso Outotec, on the back of a host of sanctions imposed on Russia from the European Union, the United States and other countries, has temporarily ceased its deliveries to the country.

The sanctions – a result of Russia’s military actions against Ukraine – have not targeted the mining sector specifically, but those placed against the banking sector and individuals, as well as other restrictions, may have an impact on Metso Outotec and our customers’ Russia related businesses.

Metso Outotec’s customers in Russia operate in several mining and metals processing sites across Russia. Capital projects are typically long with deliveries taking place over the course of several years.

Sales from Russia represented approximately 10% of Metso Outotec’s annual sales in 2021, but the company does not have its own production in Russia, or any material procurement in the country.

Swiss Tower Mills to deliver ‘largest, most powerful’ stirred mills in the world to Russian copper project

Swiss Tower Mills Minerals says it has been awarded an order for the delivery of four energy efficient VRM50000-6500 grinding mills for a large greenfield copper project in Russia.

The scope of the project, awarded in the June quarter of 2021, includes the design, manufacturing and delivery of four Vertical Regrind Mills (VRM), each complete with a 6,500 kW variable speed drive package and a user-friendly control system.

Each regrind circuit will process up to 500 t/h of flotation concentrate.

These mills will be by far the largest and most powerful stirred mills in the world, according to Swiss Tower Mills Minerals.

Deliveries will take place during 2022 and 2023.

Last month, Swiss Tower Mills Minerals confirmed the award of an order for the delivery of one VPM10 vertical stirred grinding mill for the Navachab gold mine plant expansion in Namibia.

Polymetal pushes forward with Veduga gold project development

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.

SIEMAG TECBERG to supply hoisting system for new shaft at EuroChem’s Usolskiy

SIEMAG TECBERG and a subsidiary of EuroChem have signed agreements for the delivery of shaft hoisting systems at the Usolskiy potash complex in Perm, Russia.

This complex is built around Verkhnekamskoe, one of the world‘s largest potash deposits.

One expansion phase of the Usolskiy complex includes the already started construction of a third production shaft (Usolskiy Shaft No. 3) with a depth of 511.7 m as well as a further treatment system.

The present agreement requires SIEMAG TECBERG to undertake the engineering, production, delivery, supervision of assembly and commissioning of the following equipment:

  • Shaft hoisting systems for raw material extraction;
  • Double-drum winding machine, diameter 6 m, for skip extraction with a drive capacity of 4.55 MW designed for an annual hoisting capacity of up to 4.2 Mt. Sliding bearings with bearing lubrication, a type SB1 hydraulic braking system, rope sheaves for deflection, as well as automation and signalling equipment complete this shaft hoisting system package;
  • Hoisting equipment in the form of raw-material containers for shaft hoisting;
  • Loading stations on two levels underground;
  • Two rope deflection sheaves, diameter 6 m;
  • Shaft hoisting systems for personnel and equipment;
  • One-rope drum hoisting machine, diameter 3.6 m, for cage hoisting with one gearbox and an overall drive capacity of 1.5 MW (2 x 750 kW), including rolling bearings, a type SB1 hydraulic braking system together with automation and signalling equipment as well as a rope sheave for deflection;
  • Hoisting means (one-stage cage) with 10 t payload;
  • Two cage arresting devices;
  • Equipment for rope changing; and
  • Reeling winch, including accessories.

In the recently expanded TECBERG park, SIEMAG TECBERG is carrying out all the necessary work to ensure efficient assembly/installation and final commissioning on site. This includes complete functional assembly/installation of the equipment together with extensive system tests on drive test stands as well as pre-commissioning with all pre-settings, it said.

SIEMAG TECBERG’s “Logistics & Certification Competence for the CIS” also helps the customer achieve the fastest possible and problem-free registration and transfer of the equipment to its stock of capital equipment under official supervision.

After commissioning of the systems, the team at Usolskiy will be supported on site with the necessary spare parts, plus maintenance of the delivered equipment by qualified SIEMAG TECBERG personnel from the local service branch and storage facility at Berezniki in the Perm region.

Pictured is the Complex of Usolskiy Shaft No. 3 in (© Eurochem. Image use with kind permission.)

Metso Outotec grinding, flotation and separation equipment destined for Russian Platinum project

Metso Outotec has signed what it says is a landmark contract to deliver all key technology for a new concentrator plant in Norilsk, Russia.

The concentrator is operated by Chernogorskaya mining company, part of the Russian Platinum group.

The delivery is based on Metso Outotec’s proprietary technology and includes key equipment for grinding, flotation and separation. Metso Outotec will also deliver electrification, instrumentation and automation for the concentrator, it says. The contract, which exceeds €100 million ($116 million) in value, has been booked into the Minerals business’ September quarter orders received.

The new concentrator plant is expected to start production in 2023. It will process nickel-copper ore with high palladium and platinum content from the Chernogorsky deposit with an annual capacity of 7 Mt, according to the OEM. Metso Outotec has carried out the basic engineering for the concentrator plant in the earlier stages of the project, it says.

Evgeny Vorobeichik, Managing Director at Russian Platinum, says: “Russian Platinum is aiming for a highly efficient and environmentally friendly production process in the industrial region of Norilsk. The construction of the Chernogorsk GOK is the first stage of this large-scale project, the implementation of which will make our company one of the leaders in the production of palladium and platinum. Use of advanced technical solutions and reliable equipment is an absolute priority. The partnership with Metso Outotec and continuous support from its local operations in Russia are important components to ensuring the success of the project.”

Markku Teräsvasara, President of the Minerals business area at Metso Outotec, added: “Metso Outotec has ample experience with the arctic environment in the Norilsk region as well as with its uniquely rich and demanding ore types. We are delighted to be able to support Chernogorskaya in this greenfield project, where we will be delivering the whole concentrator with the latest technology.”

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

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.

HALMEK LITHIUM to work with Metso Outotec on lithium hydroxide plant

HALMEK LITHIUM has selected Metso Outotec’s patented lithium hydroxide process for production of battery-grade lithium hydroxide at its greenfield plant in the Tula region in Russia.

The order value, which is not disclosed, has been booked in the company’s Metals June quarter orders received.

Metso Outotec’s scope of delivery consists of the engineering and key equipment supply for the lithium hydroxide process, the basis of which will be the Metso Outotec OKTOP® autoclave plant. The environmentally sound production process is one of Metso Outotec’s more than 100 Planet Positive products, the company said.

Pavel Galchenko, VP, Halmek Lithium, said: “One of the most important tasks in the project was the selection of technology. Instead of the more traditional sulphuric acid processing to produce lithium hydroxide, we decided to choose the Metso Outotec lithium hydroxide process as it is the most promising and environmentally-sound process at the moment.

“The pilot tests conducted at the Metso Outotec Research Center in Pori, Finland, provided excellent results.”

Mikko Rantaharju, Vice President, Hydrometallurgy business line at Metso Outotec, said: “Metso Outotec has developed lithium hard rock-related technologies for some 20 years now. It started with the battery-grade lithium carbonate process and, when the market changed to favour lithium hydroxide, the process flowsheet was converted to directly produce battery-grade lithium hydroxide monohydrate from spodumene.

“Both of the processes are patented and will be significant assets in our battery chemicals business, meeting the need to produce high-end lithium-ion battery chemistries for the growing market.”

HALMEK LITHIUM’s new hydrometallurgical plant, which will complement its existing lithium hydroxide plant, is currently under construction. As raw material, the new plant will use spodumene concentrate; it will feature a capacity of 20,000 t/y of battery-grade lithium hydroxide monohydrate, which is used in the production of batteries for electric vehicles. The first production line is planned to start up in 2023, and the second production line with a capacity of 20,000 t/y is expected to start production in 2026.

ALROSA looks to ABEL HM pumps for filter press feeding

Piston diaphragm pumps from ABEL are helping Russia’s ALROSA with its filtration process at one of its diamond mines in the country.

In Spring 2021, ABEL received an order for the delivery of six of these piston diaphragm pumps, HM pumps, following an initial HM pump order in 2020. This inaugural pump was delivered to ALROSA in February 2020 as replacement for a centrifugal pump previously used for filter press feeding. At the beginning of August, the ABEL pump was commissioned at the diamond producer’s plant. The dewatering result (higher solids content, shorter filtration time) was so convincing that ALROSA decided to feed all filter presses in this plant with the pumps, ABEL said.

The latest delivery is being facilitated by ABEL’s official distributor in Russia, SibComplectService.

ABEL’s HM pumps are available as single- or double-acting versions. They come with a high flow rate, reliable function and particularly low operating and maintenance costs, the company says.

In addition to filter press feeding, the hydraulic diaphragm pumps are also used for sludge transport, spray dryer feeding, rotary kiln feeding, autoclave feeding, and sealing/rinsing water supply, among other applications.