Norilsk may resume work at Bugdainskoye if molybdenum prices grow

MOSCOW, Oct 31 (PRIME) -- Russian metals giant Norilsk Nickel is ready to return to the development of the Bugdainskoye deposit in the Zabaikalsky Region if molybdenum prices grow significantly, Sergei Dyachenko, first vice president and chief operating officer, told reporters on Tuesday.

“We have done almost everything we could on the Bugdainskoye deposit. We have a project, a positive conclusion of (state expertise body) Glavgosexpertiza, but unfortunately this project was implemented when molybdenum prices were very high, that’s why in order to return to this issue, there should be certain demand on the market. That’s why we are currently in talks with the government to maintain this license,” he said.

“If the circumstances are favourable, which will allow us to resume works at the project, we are ready. We have almost the entire infrastructure.” 

Prices will have to be no lower than U.S. $60,000 per tonne, Dyachenko said.

The Bugdainskoye polymetallic field’s resources are estimated at around 600,000 tonnes of molybdenum. The mining and processing plant’s capacity was planned at 16 million tonnes of ore per year, its reserves are estimated at 812 million tonnes. Annual production of molybdenum concentrate was expected at 10,500 tonnes.

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