Jsc zrk pavlik. Pavlik gold deposit. From an interview with Sergey Yuryevich Terentyev, General Director

The factory of the Pavlik Gold Ore Company OJSC has fully begun work on the development of one of the largest deposits in the Kolyma, which is part of the Yano-Kolyma gold ore province. The initial design capacity of the plant is 3 million tons of ore per year. It is planned that in the future the factory will produce 7-8 tons of gold per year, the press service of the Magadan Region government told IA MagadanMedia.

"This is a new milestone in the active development of the gold reserves of the Kolyma," says Governor Vladimir Pechenyi, when he commissioned the third mill at the Pavlik deposit on August 15, - the result of hard work and perseverance that led to this momentous day. "

Equipment launch. Photo: Press Service of the Government of the Magadan Region

A modern, "brand new" mining and processing plant (GOK), where the heads of the region and representatives of the Arlan investment holding arrived at the grand opening, subsidiary which (Zolotye Nedra CJSC) owns a controlling stake in Pavlik Gold Mining Company OJSC, located in the village im. Gastello of the Tenkinsky urban district of the Magadan region. Active work to prepare for the direct mining of gold at the field began in 2008. Then rock samples were collected, their thorough analysis was carried out, technological regulations and the project as a whole were developed. The construction of the factory began in mid-2012. The main supplier of equipment and automation systems - transnational company FLSmidth, which develops technologies and manufactures equipment for the mining, processing and cement industries.

"Commissioning works are underway now," says Deputy General Director of OJSC "Pavlik Gold Mining Company" for production Sergey Dyk... - The initial design capacity of the plant is 3 million tons of ore per year, however, an upward correction is underway to 4 million. This will allow mining 7-8 tons of gold per year in the future. The factory operates around the clock, including both mining and production. The production cycle employs 600 people. "

The ore at the GOK is supplied from an open pit. The rock itself, coupled with permafrost, requires only one type of preparation for transportation - an explosion. The guests were able to estimate the volume of blasting operations with their own eyes.



Gold recovery plant of the Pavlik deposit. Photo: Press Service of the Government of the Magadan Region

“Now we blew up 38 thousand cubic meters of rock at once. On average, we explode once every two days,” informs Oleg Gulyaev, deputy chief engineer for production.

The quarry employs 13 Caterpillar machines with a total lifting capacity of 190 tons and three excavators. The managers plan to purchase eight more units of special equipment in the near future. Funds for these purposes are allocated by the investment company Arlan, in cooperation with the leasing company VEB-Leasing. According to President of "Arlan" Arkady Bolshakov, considerable investments also give a considerable return, despite the difficulties that we had to go through in preparation for production.

"We faced the greatest obstacles during the development of the project due to the lack of qualified personnel. But we still found specialists and did it. In my opinion, in modern international conditions we are obliged to pay more attention to our own natural resources, development of a base for their development. Kolyma ranks first in the country in terms of alluvial gold reserves; the Pavlik deposit has great potential. I see great prospects here, because we are here seriously and for a long time, "- shares his opinion with the governor Arkady Bolshakov.



Vladimir Pechenyi at the factory. Photo: Press Service of the Government of the Magadan Region

“We also have a second object - the Rodionovskoye deposit, located sixty kilometers south of Pavlik. We have carried out exploration work, and at the beginning of next year we are planning to go to the state commission with the approval of the reserve. And the gold reserves there are almost identical to Pavlik. As for the Yano-Kolyma province itself, the experience of Pavlik development will be very useful in the development of other deposits, taking into account the acquired knowledge in geology, technology and production, "said Vasily Makarov.

During the inspection of the factory, laboratory and production facilities, the guests of the GOK were shown the real result of the work - two ingots of Dore alloy, each weighing more than twenty kilograms. They are already ready to be sent to the refinery, they consist of 80% gold and 20% silver. By the end of the year, Pavlik Gold Ore Company plans to extract about two tons of precious metal. The full production capacity will be reached after the Ust-Omchug-Omchak power transmission line is connected, for the construction of which funds will be allocated from the federal budget. The possibility of this targeted financing is provided by the very launch of the plant at the Pavlik field.



Cutting the ribbon. Photo: Press Service of the Government of the Magadan Region

"The start of gold mining here is another major step in the development of the Magadan region and the development of the Yano-Kolyma gold ore province. This is the first large enterprise in the last decade, which initiated a more active development of the cluster. For us, this is an increase in the revenues of the regional budget, and the possibility of implementing many social programs, and the growth of the well-being of the territory, and the road to the future, " Governor Vladimir Pechenyi.

The guests and employees of the GOK unanimously agreed that the start of full-scale work at the field is a kind of professional holiday. The head of the territory handed over to the workers Thanksgiving letters, welcome addresses and valuable gifts.



Gold recovery plant of the Pavlik deposit started working in Kolyma. Photo: Press Service of the Government of the Magadan Region

Reference: The Yano-Kolymskaya gold ore province includes 14 deposits, of which 9 are located in the Magadan region. These are Natalkinskoe, Pavlik, Tokichan, Igumenovskoe, Rodionovskoe, Degdekan, Upper Khakchan, Olbot, Chumysh, and Sedimentary. The deposits "Badran", "Drazhny", "Maly Taryn", "Bazovsky", "Uduma" are located on the territory of Yakutia. Resource potential provinces - 5,000 tons of gold. 50% of them are already explored. 40% of the explored reserves are concentrated in the large Natalkinskoye field (1184.3 tons). At present, the Natalkinskoye and Pavlik deposits are being developed. Geological exploration is underway at the rest of the deposits and mineral reserves are being specified. Gold production from the ore deposits of the Yano-Kolyma province, located in the Magadan region, in 2018 may reach 60 tons, in 2023 - 82 tons.

Arlan Investment Company was founded in 1990 and for decades of work on Russian market managed to gain a leading position in the field of asset management. Today, the portfolio of projects managed by the Arlan Investment Company includes the development of the Pavlik, Burkhalinskoye, Shahskoye, Utinskoye, Rodionovskoye gold deposits located in the Magadan Region, the Zolotaya Niva agricultural project in the Safonovsky District of the Smolensk Region of Russia ...

The Pavlik deposit is located in the Tenkinsky District of the Magadan Region, in the lower reaches of the stream of the same name, named after the son of the Soviet geologist Dmitry Aseev. The deposit is part of the Omchak ore-placer cluster located on the territory of the Yano-Kolyma gold ore province. Pavlik's mineral resource base is more than 240 tons of gold.

The method of working off is open. Ore beneficiation is carried out according to the traditional technology of gold extraction: gravity, flotation and sorption leaching. End-to-end gold recovery is over 80%. Electricity is supplied from the capacities of the Kolymskaya GRES.

In August 2015, the official launch of the first stage of the GOK took place. Commissioning works were completed in January 2016. In 2015-16, almost 5 tons of gold were produced.

In 2017, Pavlik GOK reached the design capacity of the Mill - 5 million tonnes of ore per year and increased gold production to 6.5 tonnes. At the end of 2017, the PAVLIK company took 9th place in the rating of the leading gold mining companies in Russia.

In 2018, it is planned to produce 7 tons of gold at the Pavlik deposit.






What are the similarities between the Pavlik gold deposit in Magadan and the Uzbek Muruntau, why it is impossible to determine exactly how long Pavlik's rich ore will last, when the company starts preparing for the IPO, and who can become its partner in M&A, he told about this in an interview with Vestnik Zolotopromyshlennika general manager ZRK Pavlik JSC Vasily Makarov

Question: Vasily Pavlovich, are you satisfied with the results of 2017? Have all the tasks been completed, have all the goals been achieved?

- We are pleased with the results of the year, especially since 2017 for Pavlik, and for me personally, is significant with round numbers. December marked the 10th anniversary of the first boreholes that confirmed the industrial significance of the Pavlik field, and the same year marks the 10th anniversary of my joining this company.

Also in December 2017, we mined a total of more than 11 tons of gold: in 2015 we produced the first ton of gold, in 2016 we already had 3.8 tons, and in 2017 - 6.5 tons, and now we are at ninth place in the rating of Russian gold producers - in the top ten.

Question: You have already entered the full the production cycle, can you say what is your production cost? What is the expected profit for 2017? How big is the debt burden?

- Yes, the Pavlik factory has already reached its production capacity for processing 5 million tons of ore. Our prime cost is approximately the same as the industry average in Russia.

I would not like to operate with exact figures, since we are a private company, and now we are in a certain negotiation process with creditors to finance the expansion of production. We will publish everything later.

We have a debt load and we would like to postpone the maturity, or reduce it. Of course, it is not easy for us, but, nevertheless, we cope, and we do not have any serious problems.

Question: How did the year begin, what are your plans?

- By the end of January, we produced 550 kg, and in February, we can already say - about 500 kg of gold. In 2017, we had just in January and February a slight decline in production due to various reasons and weather conditions - these are the coldest months. This year we went through them well, took into account the experience of the previous year, and made some conclusions.

It will be possible to correctly compare the dynamics in the second quarter, but in general, in the year we should reach 7 tons of gold, as we announced earlier. In 2017, we produced 6.5 tons, in 2018-2019, it will be 7 tons. This growth is planned without a significant expansion of the production capacity of the GOK - due to better organization labor and optimization of production processes.

First of all, in 2018 we will expand the mineral resource base - we will increase the reserves of the Pavlik deposit by about 100 tons, and we will already have about 250 tons of them in the C1 + C2 categories, and about 50 tons of resources along the P1 (flanks and underlying horizons). Now Pavlik has 150 tons of reserves (C1 + C2) and 62 tons of P1 resources, but these resources have already passed into reserves, and we will protect new ones. With all this, we clearly see that on Pavlik we did not get out of the ore, and industrial grading continues on the flanks.

On the this moment we are planning to expand production. If now the GOK can process up to 5.5 million tons of ore, then in 2020 it is planned to process 10 million tons of ore and produce 12-13 tons of gold.

Question: The media reported that VEB-Leasing had funded the construction of the plant from VEB-Leasing for 21 billion rubles. Who are you negotiating with this time, and how much money do you need to expand?

- I would not like to talk about this, except that we have not changed our financial partners, and we still have one.

And we need significantly less funds for expansion than at the very beginning. The factory will be the same, we just add equipment, mainly crushing, mills - we will double the processing capacity, and there will be a significant increase in production.

Question: And for how many years will Pavlik's rich ore last?

- If we talk about the annual processing of 10 million tons of ore from 2020, then 20 years will definitely be enough. But in general, from a geological point of view, the reserves that exist now are only a part of the reserves that we see in the contours of the projected open-pit - in fact, the ore extends far beyond the contours of the projected open-pit and is not limited by them. The reserves that we are talking about, which we put on the state balance sheet, are only the studied part of the deposit, but we have data that the ore body continues to depth and down dip to the southeast. As the development progresses, the quarry will deepen, its sides will be scattered, and, accordingly, production will continue.

Therefore, when asked about the timing, we can say that it will be enough for 50 years, that is, for a very long time. I can cite as an example the development of the Muruntau field in Uzbekistan, where preparations are now underway for the development of the fifth stage of the field, production is already proceeding at a depth of almost a kilometer, and our quarry is still not at all deep. Of course, we are not of the same scale as Muruntau, but this is also a stockwork, which also goes into the depths.

Question: What is the current state of work on Rodionovsky, what do you plan for 2018?

- This year, in May-June, we will approve the reserves at Rodionovsky - there will be a feasibility study of temporary conditions. And let's start preparing a project for its development. There are several options for its development: one of the options is preliminary enrichment on site, and then the transportation of the concentrate for processing at the Pavlik plant, or to supply its own complex of gravity extraction. That is, there is no need for such a new costly, expensive plant.

Question: What are the prospects for starting production at Rodionovskoye?

- If everything goes well now, and we start working on the development project, then by 2020 we will receive the first gold. Here the question is still open, and depending on which option is chosen, there will be corresponding production volumes. Now we will do a feasibility study, with technology ... it will be clear.

Question: And what ores are there at Rodionovsky?

- At Rodionovskoye, the ores are characterized by higher gold grades compared to Pavlik, and the ore boundaries are more pronounced, in contrast to the stockwork at Pavlik.

Question: Is it far to transport the concentrate to Pavlik?

- There is a distance of 55 km, and these are hills, - transportation is quite difficult, so it may be that building on site will be cheaper than building a corresponding road. There is one more idea - to build a purely gravitational factory at Rodionovsky, which also does not require any large expenditures. If in the feasibility study we now see that in gravity the percentage of gold yield is high enough, then we will decide.

I prefer the option of preliminary enrichment of ore on site, and then, already small volumes for extraction, are transported to Pavlik.

Question: Is there enough energy to expand capacities?

- We have enough energy to double the capacity of Pavlik's factory. And for the future, you know, now the "Mine named after Matrosov" ("Polyus") is building a power transmission line-220, it is very close to the Rodionovskoye field. Initially, it was conceived and built for the development of the Yano-Kolyma gold-bearing province, when it comes there, there will be an abundance of electricity.

- As regards the mineral resource base, I can say the following that Pavlik can reach a processing capacity of 15 million and even 20 million tons of ore (20-25 tons of gold).

The mineral resource base allows, there is potential for development, we do not stop - we are constantly conducting geological exploration for expansion, and it bears fruit.

Question: How much do you spend annually on exploration?

- I cannot say our annual costs - our geological exploration program is cyclical and lasts one and a half to two years. So, in 2016-2017, we allocated about 10-11 million dollars for promising geological exploration, for the next cycle, 2018-2019, it will be approximately the same. In addition, we constantly conduct operational exploration in the contour of the open pit.

Question: What, do you see, the Pavlik air defense system will become in another 10 years?

- I think that in five years Pavlik will process at least 15 million tons of ore and produce up to 20 tons of gold.

Question: Your main projects are in the Magadan Region, do you plan to develop locally in the future?

- In the Magadan region, apart from Pavlik and Rodionovsky, we have several more licenses, and, of course, we will deal with them.

As Pavlik and Rodionovsky reach the planned production capacity, we will free up both funds and opportunities that we intend to use to diversify our business.

Question: And you will also remain a private company, there is no idea to go public, to go public?

- Of course we are considering and thinking about this issue, but we will not do it now. Both IPO and M&A, as an option, with someone who is already traded on the exchange, but all after 2020.

Now, when we are planning to double our production, this is not entirely logical, we will first double, and then we may go to an IPO.

Question: Who do you see as M&A partners of today's industry players?

- So far, we are not specifically considering anyone, but it can be any company and not necessarily from the top ten.

Question: And how can you assess yourself in this perspective?

- Now, in money it is not possible to estimate it. Starting from 2020, Pavlik will produce about 12-13 tons of gold annually, based on this, the value of the company will be calculated.

The price of the issue is more or less understandable, but there are still a number of circumstances that form the price - a question of desire, a question of interests ... But I think that if someone from Russian companies wants to get closer to our two leaders (in the rating of gold producers, ed.), then he understands that the only way to do this is to team up with someone.

Sergey Padalko, Bulletin of the Gold Producer

Pavlik deposit is part of the Omchak ore-placer cluster in the Magadan region. It was opened in 1942.

The gold ore plant on Pavlik was put into commercial operation in August 2015. Investment in the project is estimated at $ 550 million. Mining at the deposit is carried out by open pit mining, gold extraction is at least 82%. In 2015, the Pavlik air defense complex produced 1.081 tons of gold and 270 kg of silver, in 2016 - 3.839 tons of gold, in 2017 - 6.5 tons.

Makarov Vasily Pavlovich, was born on August 28, 1955 in Tashkent. Graduated from the geological faculty of the Tashkent state university in the specialty "Geological survey and prospecting of mineral deposits". He worked in the Kyzylkum exploration expedition, at one of the enterprises of Newmont Mining Corp, in consulting company"NBL gold". Participated in the assessment of mining projects in Russia and abroad. Since 2007 he has been working at ZRK Pavlik JSC.

Conference "Gold mining companies in Asia, Eastern and Western Europe and the CIS"

 

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