Polymetal International is all set to start construction of the POX-2 project in Russia, following the completion of a recent feasibility study (FS).
The FS showed that the second POX line would increase the value of Polymetal’s refractory reserve base, consisting of about 55% of total ore reserves.
The POX facility will process concentrates from the company’s mines located at Kyzyl, Nezhda, Mayskoye, and Voro.
Polymetal International Group CEO Vitaly Nesis said: “POX-2 leverages our core technical capabilities and creates substantial value. It also fully de-risks our business model by eliminating dependence on concentrate off-take markets.
“Emerging trends in the global gold mining industry make POX-2 a crucial element of the company’s long-term strategy.”
The POX-2 project is expected to generate economic benefits as all refractory concentrates will be retained for in-house processing.
It would also result in the incremental annual production of about 30,000oz to 35,000oz of gold from the same amount of feedstock.
Pre-production capital expenditures for the POX-2 project in 2019-2023 are estimated to be $431m.
The design throughput capacity of the facility is 250-300 kilotonnes per annum (ktpa) of concentrate and maximum sulfide sulfur processing capacity is 48ktpa.
Canada-based Hatch has been selected to carry out the basic engineering, detailed engineering and POX procurement support. It will also supply custom-made equipment for high-pressure and acidic processing areas.
Polymetal Engineering will look after other processing areas, general site layout and infrastructure.
Detailed engineering and construction of the POX-2 Project is expected in the second quarter of this year, and all permits are set to be received in the first quarter of next year.
The total design capacity of the POX-2 plant will be 250kt-300kt of concentrate annually.