Varvara

Quick facts

Location: North-western Kazakhstan
Mining: open pit
Processing: 1,050 Ktpa flotation and 3,150 Ktpa CIL
Production FY2012: 101 Koz of gold and 6.6 Kt of copper
Ore reserves (JORC): 1.6 Moz gold eq. (at an average grade 1.2 g/t)
Mineral resources (JORC)*: 3.6 Moz gold eq. (at an average grade 1.4 g/t)
Production start date: 2007
Life of mine: 2021
Adj EBITDA FY2012: 100 US$m
Capex FY2012: 16 US$m
TCC FY2012: 804 US$/oz gold

Overview

Varvara is a fast-growing standalone gold and copper mine – Polymetal’s first project in Kazakhstan, acquired in 2009. It consists of the open-pit mine and a modern processing plant with a capacity of 4.2 Mtpa and has excellent transport infrastructure, inexpensive energy and promising development potential to become a processing hub to treat ore from several smaller deposits in the surrounding region.

This acquisition allowed Polymetal to achieve two key strategic objectives: to increase the company’s gold production and reserves, and to establish a presence in Kazakhstan, one of the most attractive gold and copper mining regions in the CIS.

Location

Varvara is situated in north-western Kazakhstan, 130 km south-west of the regional centre of Kostanai, 35 km from the district centre of Taranovka (which has a population of approximately 28,600 people) and 4 km from the border with Russia. The surrounding area is flat steppe with significant agricultural activity. Varvara is accessible by the main paved road network from Kostanai. Railway access is available at Tobol (65 km away) and Bataly (15 km away). The site has access to a local power grid.

Polymetal has started construction of a 21 km railway spur to facilitate bulk transportation of ores from other deposits to the Varvara processing plant (expected commissioning in Q3 2013).