Atomredmetzoloto is going to produce zinc at Novaya Zemlya in 2019

The state holding of Atomredmetzoloto and the Ministry of Defense agreed about metal production at Novaya Zemlya nearby the testing site. Atomredmetzoloto controlled by Rosatom is going to produce zinc and lead at Novaya Zemlya in 2019. Atomredmetzoloto paid for the license for exploration and development of the Pavlovskoye deposit 17.5 million rubles in May 2014. The former license holder was Sum Group of Z. Magomedov via its subsidiary First Mining Company. The Pavlovskoye deposit is one of the world largest zinc and lead deposit. Its reserves and prospected resources are 9.5 million tons by C1 + C2 + P1. First Mining Company got the license for exploration of the southern island of Novaya Zemlya in 2000 but failed to start development. Sum had difficulties with Pavlovskoye development due to the testing site of the Ministry of Defense located nearby. In October 2012, Sum sold First Mining Company to Atomredmetzoloto. They did not bring into the public the sum of the transaction but Atomredmetzoloto reported in its documentation that the Board of Directors of Rosatom decided to grant credit of 1.1 billion rubles to Atomredmetzoloto under interest rate of 9.25% for purchase of 99.5% in First Mining Company and financing of other expenses connected with purchase of the issue securities of First Mining Company on the Pavlovskoye project.