Elkon

Elkon Mining and Metallurgical Complex [EMMC] Republic of Sakha (Yakutia)

The enterprise was formed in November 2007 to mine the deposits of Elkon uranium ore district, one of the largest in the world, with 344 000 tons of uranium, or 5.3% of the world’s recoverable uranium resources.

Based on the deposits of the Yuznhaya Zone (including Elkon, Elkon Plateau, Kurung, Druzhnoe, Neprokhodimoe), as well as Severnoe deposit and Interesnaya Zone, one of the world’s largest uranium mining centers yielding up to 5 000 tons annually should be producing at full capacity by 2024.

1-Mesozoic intrusions; 2-platform carbon-bearing Cambrian bodies; 3-metamorphits and granitoids; 4-blastomylonites;5-revived ancient splits; 6-Mesozoic tectonic zones; 7-uranium deposits

At the moment, Elkon MMC is focusing on a number of front-end engineering design efforts to develop highly efficient, up-to-date ore production and processing practices. Current projects include the development of best practices for: blocking out and mining ore bodies, gold and uranium ore processing and preparation, environmental activities, exploratory work aimed at finding optimal locations for building facilities, and computations of the project’s technical and economic parameters. The results of this work will become the basis of the feasibility study for the construction. The planned industrial complex will have the capacity to perform on site the entire range of activities related to uranium ore mining, dressing, processing and production of natural uranium concentrate (uranium oxide concentrate).

In 2008, Elkon MMC accomplished the following tasks:

• geotechnical surveys for the construction of Elkon MMC;
• studies of the basic environmental conditions;
• selection and delivery of bulk-prospected ore samples from deposits on Elkon Plateau and Kurung for scientific studies and perfecting the methodology of ore processing from Elkon uranium-ore district;
• the process of obtaining a license for handling nuclear materials;
• a body of front-end engineering design work involving SRK Consulting, world’s leading specialist engineering company.

As per Decree 21 of the Government of the Russian Federation dated Jan. 17 2008, a project titled «Comprehensive Development of Southern Yakutia» has been included in a list of capital investment projects financed by the Investment Fund of the Russian Federation.

With Decree 302 dated March 10, 2009, Prime Minister Vladimir Putin of the Russian Federation approved specifications for the comprehensive capital investment project titled «Elaboration of Project Design Documentation for the Comprehensive Development of Soutehrn Yakutia Capital Investment Project». The decree stipulates that the preparation of design and budget paperwork for the construction of Elkon MMC will be financed with RUR2 657.1 mln. in 2009-10, while the preparation of design and budget documentation for the construction of infrastructure necessary for the development of Elkon MMC (automobile highways, power transmission lines, and a railroad) will also be financed. A specialized company, EMMC-Project, was created in order to obtain financing for the preparation of design and budget documentation — for the construction of Elkon MMC — via budget appropriations from the Investment Fund of the Russian Federation.

In 2010, Elkon MMC plans to complete the following:

• to develop a Pre-Feasibility Study jointly with SRK Consulting with a view to attract investment to the project;
• to complete geological surveys as set out in license agreements;
• to complete front-end engineering design work, including R&D on the ore-processing technology for ore originating in Elkon Uranium Ore District;
• to begin developing project documentation for Elkon Mining and Metallurgical Complex (EMMC).