ARMZ Uranium Holding Co. Invests in Tugansky Mining and Processing Plant

Under the agreement, construction of a mining and processing plant on the basis of Tuganskoye titanium and zircon placer deposit in Tomsk region is planned. The processing capacity will provide stable, secure and uninterrupted supply of zircon, titanium, and rutile and leucoxene concentrates of strategical importance for the needs of ROSATOM State Atomic Energy Corporation and other major Russian enterprises.

At the moment, the construction of Stage I of the mining and processing plant is in its final part. The production start-up is planned for Q4 2021. It will be the first full-scale Rare and Rare Earth Metal project within the Russian Federation’s roadmap «New Material and Substance Technologies».

Within the agreement, OUP, LLC commenced financing Stock Company Tugansky Ore Mining and Processing Enterprise «Ilmenite» with the limit exceeding RUR 500,000,000. The funds will be used to complete construction and installation operations. This will allow OUP, LLC to obtain 25% of the enterprise stock, with a right of further increase of its share.

The Agreement was signed during a joint visit of the management of ARMZ Uranium Holding Co. and Stock Company Tugansky Ore Mining and Processing Enterprise «Ilmenite» on the mining and processing plant construction site 35 km away from Tomsk. The document was signed by Ruslan Dimukhamedov, ARMZ Uranium Holding Co. Development Director and OUP, LLC Director General; Andrey Kabanov, Stock Company Tugansky Ore Mining and Processing Enterprise «Ilmenite» Director General; and Roman Mironchik, Director of Izurium Capital investment fund, as a representative of the current asset owners.

«Within the Russian Federation’s roadmap „New Material and Substance Technologies“, ARMZ Uranium Holding Co. is responsible for Rare and Rare Earth Metals area. They are required for satisfying the strategical needs of the state, in particular, for defense and space development projects. We shall find the solutions suitable for two problems at the same time — they shall provide domestic market procurement and be profitable. The promising projects include construction of Tugansky Mining and Processing Plant. As a result of it, ROSATOM State Atomic Energy Corporation will receive zircon and titanium concentrates it needs, which are now imported from abroad. At the same time, we are in process of negotiations with other potential consumers», Ruslan Dimukhamedov said.

«Our country is abundant with natural resources. However, processing of rare earths is a complicated and expensive thing. Tuganskoye deposit of titanium and zircon sands is better prepared to commercial exploitation (compared to any other Russian deposit of that sort), has well developed infrastructure and logistics, as well as proven technologies. Besides the main products, such as zircon and titanium concentrates, production of large amounts of glass-melting and graded sands is planned. The support of ROSATOM State Atomic Energy Corporation allows to expect that the enterprise’s future will be the most innovative with regard to equipment, the most advanced with regard to technology, and that the plant’s start-up will take place in accordance with the agreed construction schedule in Q4 2021», Andrey Kabanov said.

Now, within the construction of the Stage I, commercial development of the Yuzhno-Aleksandrovsky area of Tuganskoye deposit is taking place, along with the construction of the mining and processing plant with the annual production rate of 575,000 tons of ore sands. If the product demand is confirmed, additional stages can be provided within the framework of commercial development of Kuskovsko-Shiryayevsky area in order to increase the annual production rate to 6,900,000 tons.