Rosatom Refuses To Build Floating Mining And Processing Plant In The Arctic
- 18.04.2023, 18:17
Because of the sanctions.
The First Mining Company, which is part of Rosatom, will not build a floating mining and processing plant for the Pavlovskoye deposit on Novaya Zemlya. The project had to be abandoned due to sanctions, Vedomosti writes, citing First Mining Company’s representative Natalya Potapova.
According to her, instead, the mining and processing complex will be erected on the shore. However, this will require a new concept for the development of a silver-bearing lead-zinc deposit. Initially, they wanted to make the floating mining and processing plant on a non-self-propelled vessel, or barge. The floating plant was preferable both economically and environmentally, Rosatom reported.
The equipment was to be supplied by the Finnish Metso Outotec. From the same country was the barge designer — Aker Arctic, while Wartsila was responsible for the creation of a power plant that provides options for both nuclear and non-nuclear generation. All of them curtailed cooperation with Rosatom due to Russia's invasion of Ukraine.
Director of the consulting company “Gekon” Mikhail Grigoriev believes that the option of a floating mining and processing plant was worked out due to the limited period of development of the deposit, and after the depletion of reserves, the plant could be transported to another location.
Construction and installation work at the mining and processing plant will begin in 2023, although they were previously scheduled for May 2022. A source familiar with the situation explained that the launch was delayed “due to the need for additional design work,” including those related to the equipment replacement, so as not to face other sanctions problems, since Rosatom initially focused mainly on European manufacturers.
In September, Rosnedra extended the license of the First Mining Company for the development of the Pavlovskoye field until December 31, 2040. According to the document, it must be put into operation no later than December 1, 2024. The mining and processing complex plans to produce up to 47,000 tons of lead and 223,000 tons of zinc concentrates per year.
At the last International Economic Forum in St. Petersburg, Rosatom's special representative for the Arctic, Vladimir Panov, estimated capital investments in the development of the field at 61 billion rubles. The State Commission for the Development of the Arctic decided to subsidize the infrastructure of the project in the amount of 10%.
According to managing director of the NRA rating service Sergey Grishunin, due to the need to solve the problem with autonomous power supply, the mining and processing complex will start working no earlier than the end of 2028. “On average, mining and processing plants are launched in 5–7 years. If the company takes a responsible approach to construction, it can be completed in 3-4 years,” the expert added.