ARMZ Uranium Holding Co. and the Government of the Arkhangelsk Region signed the Cooperation Agreement

On March 11, 2015, JSC Atomredmetzoloto Director General Vladimir Verkhovtsev and Arkhangelsk Region Governor Igor Orlov signed a Cooperation Agreement.

ARMZ Uranium Holding Co., a company operated by Rosatom State Atomic Energy Corporation, is embarking on the development of the Pavlovskoye argentiferous lead-zinc deposit located on the Novaya Zemlya archipelago. The deposit is ranked the fifth worldwide in terms of metal content. A license for development is held by JSC First Ore-Mining Company, a subsidiary of ARMZ Uranium Holding Co. The enterprise has the design capacity of 220,000 tonnes of zinc concentrate, 50,000 tonnes of lead concentrate and 16 tonnes of silver per annum. These indicators will enable the mining complex to secure the second position among Russian producers.

The Agreement covers the implementation of social and industrial programmes conducive to comprehensive development of the Arkhangelsk Region, sustainable development of mining enterprises located on the Novaya Zemlya archipelago and achievement of a balance between mutual interests.

“This Agreement may rightly be called a historic one. Here, on the White Sea and Barents Sea coast, the development of the northernmost largest lead-zinc deposit has been launched,” Igor Orlov noted. “This project opens up new opportunities for our region in the area of port development, road network expansion and infrastructure construction.”

According to Vladimir Verkhovtsev, discovery and exploration activities on the Novaya Zemlya archipelago have already been completed:

“In 2017, we plan to commence the construction of an ore-mining and processing industrial facility, and in 2019 – to obtain first metals,” the Director General of the uranium holding company said. “The investment volume is approximately 12–14 billion rubles. This year, we will approve a feasibility study of permanent exploration conditions and field reserves, which will enable us to start design works. Once we prepare a full set of necessary documents, we will raise bank financing. So far, the project is being implemented out of the funds of Rosatom State Atomic Energy Corporation.”

The Agreement is aimed at consolidating resources of both parties to ensure efficient management and the region’s general development. It stipulates the company’s social responsibility and opens up new opportunities for personnel training and employment of people living in the Russian North. In its turn, the region’s government undertakes to facilitate the project implementation, in particular, by establishing economically justified electricity rates, building up relationship with potential suppliers of goods and services required to develop the deposit, as well as by granting tax exemptions.

Within the framework of the visit, the ARMZ Uranium Holding Co. delegation met with heads of leading companies based in the Arkhangelsk Region and discussed prospects for cooperation. The company’s plans involve engaging local contractors in the construction of major facilities such as a quarry, an enrichment plant, industrial infrastructure, a pier, roads and a workers’ camp building capable of accommodating 400 people.

The company also expressed its willingness to use the Arkhangelsk Region’s transport and logistics infrastructure for the transportation of concentrates.

Vladimir Verkhovtsev noted that the meeting was of constructive nature and thus it laid the foundation for further collaboration and a fruitful dialogue between the Arkhangelsk Region Government and JSC Atomredmetzoloto.