Mining company KAZ Minerals said it would now take responsibility for a portion of the costs for the Baimskaya project in Russia resulting in a delay to the project of about one year.
Given the changes in the infrastructure plan, the bankable feasibility study for the project was now expected to be completed in the first half of 2021, the company said.
Under the complex development plan - submitted to Russian government, for new infrastructure in the Chukotka region - Kaz would now be responsible for sections of the port and a circa 200 km section of the permanent road, resulting in additional construction costs estimated in the region of $600 million.
The Baimskaya project was now expected to commence production by the end of 2027 and have an annual ore processing capacity of 70 Mtpa.
'Together with a revised cost for the tailings storage facility and the impact of an approximate one year delay to the project schedule, the capital construction budget for the Baimskaya project is now estimated to be close to $8 billion,' the company said.
Story provided by StockMarketWire.com