Canadians are ready to work with dumps of the Trans-Baikal Mining and Processing Plant. Their lithium reserves are estimated at 19 million tons. The volume of production of salts from this raw material can be about 9 thousand tons per year, and the dumps themselves will be enough for 13 years of operation. The nearby Zavitinsky lithium mine has reserves for another 20 years of operation.
The ore processing workshop, which operated in the village of Pervomaisky during the Soviet era, is currently suspended and requires modernization. The production site itself is located 250 kilometers from Chita, which allows it to “dock” with the Trans-Siberian Railway. This, according to Canadians, provides the project with good opportunities for exporting raw materials to Japan, South Korea and China.
Production can be launched as early as 2017. This is stated in a presentation on the site of the Canadian company. Among the advantages of the project, the investor notes the presence of trained personnel, a railway and sources of electricity in the village.
Photo: © RIA Novosti / Alexander Mokletsov
In 2016, as a result of bankruptcy proceedings, OJSC Zabaykalsky GOK was liquidated. The Pervomaisky GOK company bought the Dressing Plant (part of the Trans-Baikal GOK) at the auction and proceeded to actively attract industrial and financial partners for the project.
Pervomaysky GOK, in accordance with the terms of the signed memorandum, will provide Canadians with all the necessary information for due diligence. After it, Canadians will receive a right to 5% of the mining and processing enterprise, while they preliminary estimate their own costs for conducting a project audit in the amount of up to $ 1 million.
Then, Canadians will prepare a feasibility study for the project according to international standards and will receive an option for another 25% of GOK (the budget for the feasibility study will be specified additionally). Further, Stans Energy and Pervomaisky GOK will agree on the construction of a production workshop for the production and Canadians will receive an option to purchase 100% of the project.
A Canadian investor preliminary estimates the investment in the project at $ 70.5 million, and operating costs at $ 3.4 thousand per ton of lithium carbonate. With a finished product price of $ 7 thousand per ton, annual revenue will be $ 63 million.