The intergovernmental agreement was signed during the visit of the Chairman of the Government of the Russian Federation Mikhail Mishustin to the Republic of Kazakhstan
The government of the Russian Federation and the government of the Republic of Kazakhstan signed an agreement on the specifics of carrying out economic activities in the border area when mining copper ores at the Tarutinskoye deposit in the Chelyabinsk region. The document was signed during the visit of the Prime Minister of the Russian Federation Mikhail Mishustin to the Republic of Kazakhstan on August 18, 2021. The document was signed by the Minister of Natural Resources and Environment of the Russian Federation Alexander Kozlov and his Kazakh counterpart Magzum Mirzagaliev.
Photo: press service of the Government of the Russian Federation
The Tarutinsky area of copper ores is located in the Chesmensky district of the Chelyabinsk region of the Russian Federation. The eastern border of the site runs along the state border with Kazakhstan. The owner of the license is Vostochny Basis LLC (part of the Russian Copper Company Group). The total area of the license area is 1.81 km2. Approved balance reserves of ore are 4.583 million tons, copper reserves - 63.7 thousand tons.
Alexander Kozlov, Minister of Natural Resources and Environment of Russia: «The subsurface management is the foundation of the Russian economy, a powerful base for highly profitable investment projects that create new jobs for residents. The development of the Tarutinskoye deposit will provide additional tax revenues to the regional budget in the amount of 2.4 billion rubles. This agreement also expands interregional cooperation between Russia and Kazakhstan. In particular, a geological study of the subsoil area and exploration of minerals will be carried out. Within the framework of the program «Reproduction and use of natural resources» we pay special attention to increasing the volume of geological exploration - which is also a priority for us in our work».
The Tarutinskoye deposit is planned to be developed by open pit mining with a capacity of 750 thousand tons of ore per year for 9.5 years. The mined ore will be delivered by road to the Mikheevsky GOK (Varnensky district of the Chelyabinsk region, part of the RCC Group) for further processing. The implementation of the project for the development of the field will provide 350 new jobs.
The president of RCC, Vsevolod Levin: «The development of the Tarutinskoye deposit is already the second investment project implemented by RCC within the framework of agreements on cross-border cooperation between Russia and Kazakhstan. The experience has shown that this format of interaction is effective and benefits the economies of our states. The signing of the agreement will allow RCC to implement a project that will give an additional boost to the development of the Chelyabinsk region. RCC is investing 1.2 billion rubles in the construction of a mine and infrastructure facilities at the Tarutinskoye deposit».
Vostochny Basis LLC
The owner of the license for the Tarutinsky site, Vostochny Basis LLC, became part of the RCC Group in 2018 as a result of a deal with Polymetal. Under its terms, the Tarutinskoye deposit in the Chelyabinsk region, owned by Polymetal, was exchanged for the Vostochno-Tarutinskoye deposit in Kazakhstan, which belonged to the RCC Group. As a result of the transaction, Polymetal received 85% in Tarutinskoye LLP, which owns the license to develop the Vostochno-Tarutinskoye gold-copper deposit in Kazakhstan. In exchange, Polymetal transferred RCC 100% in Vostochny Basis LLC, which holds the license to develop the Tarutinskoye gold-copper deposit in the Chelyabinsk region of Russia.
The transaction was an exchange of assets and did not include additional payments or deferred consideration. It provides benefits for both parties by improving the logistic connection of the deposits with the existing processing factories. Vostochno-Tarutinskoye is located on the same (Kazakhstani) side of the border as the processing plant of Polymetal's Varvarinskoye deposit. Tarutinskoye is located in the Chesmensky district of the Chelyabinsk region, about 30 kilometers from the Mikheevsky GOK, which operates in the Varna district.
The experience of cross-border cooperation between Russia and Kazakhstan in copper mining
RCC is developing the Vesenne-Aralchinskoye border deposit. Its southern part is located in the Khromtau district of the Aktobe region of the Republic of Kazakhstan, the northern part is in the Dombarovsky district of the Orenburg region of the Russian Federation. The licenses for copper mining on both the Kazakh and Russian sides of the Vesenne-Aralchinskoye deposit are owned by RCC enterprises. Two different legal entities carry out production independently of each other. The ore from the Kazakh part of the Vesenne-Aralchinsky deposit (Aralchinsky site) is mined by Aktobe Copper Company LLP (Republic of Kazakhstan), and ore from the Russian part of the deposit (Vesennyi site) provides loading of the concentration plant of ORMET JSC (Russian Federation). The peculiarity of the geographic location of the deposits required the adoption of measures at the interstate level to reach agreements on the conditions for the development of reserves on the part of the Republic of Kazakhstan and the Russian Federation. An intergovernmental agreement on this was signed in 2014.
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