Polymetal approves expansion at Amursk POX plant

Polymetal International has approved the de-bottlenecking project at the Amursk POX plant that will expand capacity by around 50% in terms of concentrate processed.

The project will allow Polymetal to retain approximately 50% of the Kyzyl concentrate for in-house treatment as opposed to a third party off-take.

POX processing is expected to improve effective gold recovery from concentrate by 3-4 percentage points and bring down processing and transport costs by $150-250 per tonne of concentrate.

An alternative processing route will strengthen Polymetal's commercial position on the concentrate market vis-à-vis off-takers, the group said.

"We believe capital-light debottlenecking of the Amursk POX plant is the best approach given the steady increase in Polymetal's refractory reserve base", said chief executive officer Vitaly Nesis.

"The project leverages existing infrastructure and skills base to strengthen our competitive advantage in the industry and materially improve the economics of our flagship Kyzyl project.”

Polymetal said it intends to ramp up the debottlenecked POX plant to full expanded capacity in the second half of 2018, in time to take first feed from the Kyzyl concentrator.

Associated capital expenditure is estimated at $55m including contingency, to be predominantly incurred during 2017 and 2018.