In the light of recent developments, and in the interests of preserving shareholder value, the Board and the Special Committee have decided to consider all possible options available for divestment of JSC Polymetal and its subsidiaries.
Key facts
| Location | Khabarovsk Region, Russia |
| Ownership | 100% |
| Concentrate capacity | ~ 250-300 Ktpa |
| Feed | Double refractory concentrates from:
|
| Processing | High-temperature POX, intensive cyanidation |
| Production start | H1 2024 |
/up to 600 Koz per year
/up to 300 Kt per year
Double refractory ore concentrate contain ore micron gold particles encapsulated in sulfides (pyrites and arsenic pyrites) together with high concentrations of organic carbon, that is why conventional methods such as cyanidation or heap leach gives very low recoveries. For refractory ore, processing options include pressure oxidation (POX), bio oxidation (BIOX) and roasting. POX delivers the lowest SO2 and AS203 emissions, cyanide consumption and OPEX, though it is the most capital intensive.
What is amursk POX-2
Amursk POX-2 is designed for processing double-refractory ore and aimed to make 100% of the Company’s refractory ore to be processed in-house.
POX-2 differs from POX-1 in the way that it will operate at two-times higher pressure and 40 *C higher temperature, and it will use a larger and more advanced autoclave (one of the biggest in the world), lined with titanium rather than brick. Total capital costs for the project in
Please follow the link for more information about the results of the project feasibility study.
The new plant will be located next to the existing POX facility in Amursk so it will benefit from sharing some of the external infrastructure (gas main, access road, water main) while additional electricity supply will be provided through a new dedicated power line from the regional grid.
The project is managed by the team of more than 30 professionals who actively participated in the successful execution of the original POX (2013) and POX debottlenecking (2018) projects.
Why it is important
Currently 55% of Polymetal’s reserves are double refractory. In 5 years , almost 40% of the annual production will be double refractory. With this POX-2 will allow 100% in-house processing rather than selling to offtakers, which will result in lower costs, higher recoveries and reduced environmental footprint. Overall, it is expected that POX 2 will reduce all-in sustaining costs per ounce for refractory assets by $100-150.
The project is now 83% complete. All the construction, in terms of buildings, is already done and internal building works have now commenced. The project remains on track to be fully commissioned in Q2 2024, in line with revised schedule which accounts for new geopolitical complexities.
The installation of cable structures and equipment in the power unit section of the downstream circuit has been completed and voltage was successfully supplied for commissioning the intensive cyanidation section (expected in Q1 2023). The installation of pipelines and connection of technological equipment are nearing completion. The carbon-in-leach (CIL) thermal circuit has been completed and the High Bay heating and ventilation systems are being installed (steam conditioning section). The construction of metal frameworks and concrete works for installing technological equipment in the CIL and High Bay sections continues.
- The environmental footprint of the Company’s value chain will decrease significantly because of the substantial reduction in air pollution, water usage and dry stacking of tailings.
- Amursk POX-2 will create 400+ new jobs with a focus on providing local career opportunities for engineers and technical staff, and encouraging young talent.
- Start-up of intensive cyanidation circuit for gravitational concentrates
- Start of cryogenic oxygen plant
- Completion of processing equipment and pipelines installationComplete supervised installation/construction of intense cyanidation circuit and commission in first half of 2023 to start processing Nezhda gravity concentrate
- POX mechanical completion and start of commissioning activities
The POX hub is based in Amursk, a city with a population of approximately 43,000 people, located on the northern bank of the Amur River in the Khabarovsk region of the Russian Federation. It is located 350 km from Khabarovsk, the largest city and administrative centre in the region, and 54 km from the large industrial city of Komsomolsk-on-Amur. The production site is accessible by the city road network, with the railway spur located only 4 km away.
