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June 27, 2018updated 10 Nov 2021 6:28am

Russia’s Polymetal brings Kyzyl mine on stream in Kazakhstan

Russian miner Polymetal International has commenced production at its new Kyzyl mine in Kazakhstan after the completion of all construction and commissioning activities.

Russian miner Polymetal International has commenced production at its new Kyzyl mine in Kazakhstan after the completion of all construction and commissioning activities.

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As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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The production of the first gold concentrate from the Kyzyl mine was originally slated for next month, as per the company’s January 2018 updated plan.

The capital expenditure for the project is anticipated to be around 3% lower than the previously announced $325m budget, including 62Mt of pre-stripping.

“Polymetal is delighted and proud to successfully complete the largest development project in the company’s history ahead of time and below budget.”

Polymetal International group CEO Vitaly Nesis said: “Polymetal is delighted and proud to successfully complete the largest development project in the company’s history ahead of time and below budget.

“Significant cash flow and net income contributions from Kyzyl should start in Q4 2018.”

Deliveries of concentrate to companies which signed off-take deals are expected to begin next month, while shipments to Polymetal’s Amursk POX will start in September.

Polymetal has started a three-month period of increased productivity at the Kyzyl concentrator, following which it is scheduled to reach nameplate capacity of 150kt per month and recoveries of 86% by October this year.

The company expects to achieve production of 80koz of payable gold at the mine this year, before ramping up output to 280koz in 2019 and 330koz thereafter.

Kyzyl is estimated to contain JORC-compliant gold reserves of 7.3Moz at 7.7g/t of Au, with an expected mine life of ten years for the open pit, followed by an additional 14 years of underground mining.

The company noted that the presence of additional JORC-compliant gold resources of around 3.1Moz at 6.8g/t presents a strong case for further expansion.

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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