Russia-based gold and silver miner Polymetal has agreed a ten-year loan of $77-million, with the money being partially used to finance construction of the second stage of the miner’s Amursk pressure oxidation plant (POX-2) in 2020/21.
The loan is based on at 5% fixed rate, and is taken with the Far East and Arctic Development Fund.
The Amursk POX plant hub currently comprises two high-grade refractory gold deposits – Albazino and Mayskoye – and three processing facilities – the Albazino and Mayskoye concentrators – and the Amursk hydrometallurgical plant that uses POX technology for processing refractory ore.
POX-2 full ramp-up is scheduled for the fourth quarter of 2023.
POX-2 capital expenditures until the end of 2020 are estimated at about $100-million, while the total investments remaining until the end of the construction are expected to amount to $312-million. The loan has a tenor of ten years and is repayable in equal quarterly instalments from December 2023 until May 2030.
The POX-2 is also a member of the Territory of the Advanced Social and Economic Development under an investment activity agreement with the Far East Development Corporation, which provides a number of tax and other benefits.
Polymetal CEO Vitaly Nesis says the POX-2 project is important for the entire Far East region. “We are pleased to secure long-term, low-cost financing with a smooth repayment profile.”