The Russian Federal Securities Board and Ministry of Defence have approved a mine exploration permit for British company Eurasia Mining’s planned Monchetundra platinum project.

The next stage of approvals for the two-million-ounce platinum group metals (PGM) Monchetundra project includes a review by the Ministry of Economic Development and Ministry of Natural Resources, before it is sent to the office of Russian Prime Minister Dmitry Medvedev for final approval.

The project will be located on the Kola Peninsula in the northwest of Russia.

“The Monchetundra project is very much a focus of the company’s business.”

The company expects to receive the outstanding approvals for the mine permit by late summer.

Eurasia Mining executive chairman and managing director Christian Schaffalitzky called the news “a very welcome development for our Monchetundra mining licence permit, which remains on schedule.

“Discussions are ongoing with a wide range of potential stakeholders regarding the projects route to commercial development, including continuing discussions on off-take agreements, refinery contracts, and discussion with our engineering procurement construction and finance partner Sinosteel.

“The Monchetundra project is very much a focus of the company’s business, alongside the now full scale production of PGM at our West Kytlim mine.”

Based on an internal calculation, the project is estimated to contain reserves and resources of two million ounces PGM with a palladium to platinum ratio of 2:1 and an in-situ value of around $2bn.

The project also contains Russian standard C1 and C2 categories of 55.9t palladium equivalent at two open-pittable locations, West Nittis and Loipishnune, while gold and base metal credits at the pits include 28,124t of copper, 30,410t of nickel and 2t of gold.

Chinese state-owned infrastructure project group Sinosteel has been awarded an engineering, procurement, construction and finance (EPCF) for the project.