Armenia Metals and Mining
Within first ten months of the current year the total volume of polypropylene (PP) production in Russia increased by 8% compared to the same period of 2015 and amounted to more than 1.127 million t
Lydian Armenia (subsidiary of British-Canadian Lydian International Ltd) and local Ameriabank concluded the secured credit agreement for $24 million, the funds of which will be invested into the Am
Interview with Vitaliy Nesis, the chief of Polymetal Int
Q. : What is Polymetal Int going to perform for optimization of the work of Kapansky GOK purchased recently? How will you execute additional loading of the enterprise with raw materials? What indices are you going to achieve?
A. : Nowadays the processing capacities of Kapansky GOK are loaded by less than one half.
Polymetal continues its expansion in Armenia: the company is going to buy the Kapan gold ore deposit with working GOK, on the basis of which it plans to create a hub for processing, for $50 million in cash and shares. For a while, the asset is unprofitable, and Polymetal will have to improve the productivity at the Kapan deposit and to reduce the costs. Other Russian miners didn’t pay much attention to Armenia, but the country virtually has no large explored deposits, except the Kapan one.
Polymetal is going to buy the active asset Kapan in Armenia – a deposit with resources of 2.6 million gold equivalent ounces (1.4 million ounces of gold, 24 million ounces of silver and 80 tons of copper and 270 thousand tons of zinc, the average gold content is 5 grams per ton), processing plant and infrastructure from Canadian company Dundee Precious Metals Inc.. According to the company, Polymetal will purchase 100% of the Armenian Dundee Precious Metals Kapan, paying $15 million with its new shares (approximately 0.04% of the total amount is in circulation) and $10 million in cash. Polymetal also will pay Dundee annually 2% of royalty on the Kapan project, the total payout is limited with $25 million. The closing of the transaction requires the approval of Dundee creditors (European and Canadian banks), in which shares in assets, including Kapan (the size of the package is not disclosed) are pledged on loans for $32.5 million and regulators. The deal is expected to be closed no later than on June 30.
Polymetal International plc announces of the growth of its stake in the Lichkvaz deposit in Armenia up to 100%.
Polymetal has purchased the additional 75% in the company’s stake that holds the Lichkvaz deposit in Armenia as a result of which the stake of Polymetal in the asset rose from 25% to 100%. The purchase was held for 1,084,853 of shares for $9.7 mln (0.26% of the registered capital).
The decision to increase the stake up to 100% was made on the basis of the positive results of exploratory drilling which held during the season 2015.
The drilling works are over. In total 15,800 m were drilled at 70 geological exploration wells, the results of analytical studies of samples of 20 exploratory wells (25% of the total number of samples) were made. By the first data, 9 balance ore intersections were found out with the average contents of 6.4 g/t of gold equivalent per average true width of 4.5 m.
In Q2 2016 Polymetal plans to fully work out the results of geological exploration works held in 2015 and make a report with the assessment of mineral resources under JORC.
Russian mining company Polymetal International plc continues to conduct exploration work at the Lichkvaz gold mine in Armenia. According to the press service of the company the estimate of reserves is not yet made, and therefore, the decision to increase the share in the company to 50% has not been made yet.
Note that in April 2015 Polymetal, acquiring 25% share in the company that owns the license for exploration at the Lichkvaz field for 429,260 of its own shares in the amount of 3.5 million dollars, has undertaken the exploration and technology research financing.
In the six months of 2015, Armenia increased its exports of copper ore by 58% as compared with the same period in 2014 (against the growth by 6.7% in 2014), molybdenum ore - by 28.8% (against the growth by 15.4% in 2014), and at the same time slightly increased the export of zinc ore by 8.9% (against the growth by 20.1% in 2014).
Rusal UC has launched a highly eco-friendly unit AirPure at the foil-rolling plant at the Armenal plant. The investment into the project made up $6 mln.
The unit catches, filters and condenses the fumes of the coolant-cutting fluid used at the cold rolling of foil. The equipment was installed with the participation of Achenbach company (Germany).
The ecological effect of this process is that the exhaust steam is used repeatedly and is not emitted into the atmosphere. Moreover, labor conditions at the foil rolling production capacity significantly improve.
“We hope the annual effect from the implementation of the project on the reduction of the prime cost of foil output by means of regeneration and return of caught fume of coolant cutting fluid will make up $2.9 mln. Thus it is planned that due to the reduction of expenditure the project will pay back in 2 years”, the director for packing business of Rusal, S. Goryachev, said.
Polymetal International plc has acquired a 25% stake in the Lichkvaz deposit, located near Meghri, in the Syunik region, in the south of Armenia. According to the press centre of the company, Polymetal agreed order of increasing its stake in the asset to 50%.
"I am pleased to announce the decision to buy a stake in the Lichkvaz deposit, our first asset in Armenia. I hope that this project with a high content will be more by results of geological exploration and will create an optimal springboard for our future development in the new region,"- said general director of Polymetal Vitaly Nesis.
Protocol to an agreement dated December 2, 2013 was signed by A. Novak and E. Zaharyan.
Let’s recall, on December 25, 2014, Armenia approved a protocol for bilateral agreement with the Russian Federation on cooperation in the supply of natural gas, oil and rough diamonds into the territory of Armenia.