Amur Oblast, Mining Industry Investment Project

Development of the Gar’ iron ore deposit and construction of a mining and metallurgical works.

It is necessary designing and prospecting works, to draw up project and estimate documentation, to acquire and to install the equipment, to construct production units and rail tracks.

Volume of the investments required and their breakdown by stages:

1. Preparation of the feasibility report of the project and acquisition of license - US$ 4.0 M.

2.Creation of basic infrastructure including a construction of the railway connecting Chagoyan and Gar (85 km) and a reconstruction of Chagoyan-Shimanovsk rail track - US$105 M.

3. Construction of a quarry with annual mining capacity of 10.5 M t of ore- US$65 M.

4.Construction of ore concentrating plant for two stage wet magnetic separation with annual output of 4,5 million tones of concentrate - US$120 M.

5. Construction of a plant to produce 3.2 mill t of pellets per annum (8 rotating furnaces with the production capacity of 400 thousand t per annum) – US$170 M.

6. Construction of electrometallurgical plant on melting of 2.5 mill t of steel and building up of a metallurgical processing plant. - US$950 M.

Total production costs over the period of the project - US$1414 M.

Term of recoupment – 8 years.

Annual output of products after completion of construction - US$650-7000 M.

Means of attraction of the investments: Newly organizing project through establishment of joint venture.

Initiator of the project: Amur Region Administration (Department on the Use of Natural Resources and Mining Complex).24, Shevchenko St., Blagoveshchensk, Amur Region, 675000.

Contact: Head of the Department – Nikolai A. Starkov,

tel.: +7 (4162) 532-225

Institute of geology and nature use, Amur Research Centre, Far east Branch of the Russian Academy of Sciences, 1,Relochny, Blagoveshchensk, Amur Region, 675000

Contact: Director of the Institute - Sorokin Anatoliy P. tel: 8-4162-524809; fax: 8-4162-525931;

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