In the light of recent developments, and in the interests of preserving shareholder value, the Board and the Special Committee have decided to consider all possible options available for divestment of JSC Polymetal and its subsidiaries.
Key facts
| Location | Khabarovsk Region, Russia |
| Ownership | 100% |
| Concentrate capacity | ~ 250-300 Ktpa |
| Feed | Double refractory concentrates from:
|
| Processing | High-temperature POX, intensive cyanidation |
| Production start | H1 2024 |
/up to 600 Koz per year
/up to 300 Kt per year
The key to double refractory ore
Double refractory ore concentrate contain ore micron gold particles encapsulated in sulfides (pyrites and arsenic pyrites) together with high concentrations of organic carbon, that is why conventional methods such as cyanidation or heap leach gives very low recoveries. For refractory ore, processing options include pressure oxidation (POX), bio oxidation (BIOX) and roasting. POX delivers the lowest SO2 and AS203 emissions, cyanide consumption and OPEX, though it is the most capital intensive.
What is amursk POX-2
Amursk POX-2 is designed for processing double-refractory ore and aimed to make 100% of the Company’s refractory ore to be processed in-house.
POX-2 differs from POX-1 in the way that it will operate at two-times higher pressure and 40 *C higher temperature, and it will use a larger and more advanced autoclave (one of the biggest in the world), lined with titanium rather than brick. Total capital costs for the project in
The new plant will be located next to the existing POX facility in Amursk so it will benefit from sharing some of the external infrastructure (gas main, access road, water main) while additional electricity supply will be provided through a new dedicated power line from the regional grid.
The project is managed by the team of more than 30 professionals who actively participated in the successful execution of the original POX (2013) and POX debottlenecking (2018) projects.
Why it is important
Currently 55% of Polymetal’s reserves are double refractory. In 5 years , almost 40% of the annual production will be double refractory. With this POX-2 will allow 100% in-house processing rather than selling to offtakers, which will result in lower costs, higher recoveries and reduced environmental footprint. Overall, it is expected that POX 2 will reduce all-in sustaining costs per ounce for refractory assets by $100-150.
The POX hub is based in Amursk, a city with a population of approximately 43,000 people, located on the northern bank of the Amur River in the Khabarovsk region of the Russian Federation. It is located 350 km from Khabarovsk, the largest city and administrative centre in the region, and 54 km from the large industrial city of Komsomolsk-on-Amur. The production site is accessible by the city road network, with the railway spur located only 4 km away.
