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PROJECT GOAL
The project goal is creating on the basis of the Seligdar apatite deposit of a contemporary mining and chemical complex producing apatite concentrate, compound phosphoric fertilizers and concomitant products.
Current stage of the project:It is expected that the Federal Agency for Mineral Resources will for the second time announce an auction for the right of using the Seligdar mineral deposit;
a search is under way for a strategic investor to participate in the auction and to finance the project of construction on the MCC.
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PROJECT TEAM
Initiator: South Yakutia Development Corporation, a public company
South Yakutia Development Corporation has been working since 2007 on the investment project of national importance, called “Integrated Development of South Yakutia”.
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2011 2012 2013 2014 20150
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4
6
8
10
12
14
16
18
20
3.8
6.67.3
10.9
15.1
2.3
6.9
8.9
14.7
18.8
1.4 1.9 1.9 2.22.9
MARKET BALANCE BETWEEN DEMAND AND SUPPLY OF MAIN FERTILIZERS, MLN. TONS Source: IFA
The growth rates of the global fertilizer market range from 2.8% to 3.2% per year.
Its key driver is population growth.0
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100
150
200
250
2010 2012 2015 2020
potassium
phosphoric
nitrogen
FORECASTING GLOBAL CONSUMPTION OF MINERAL FERTILIZERS, MLN. TONS Source: IFA
MARKET OF PHOSPHORIC FERTILIZERS
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USA24%
Russia17%
China 16%
Morocco8%
Tunisia7%
Other countries
28%
BREAKDOWN OF GLOBAL PRODUCTION OF PHOSPHORIC FERTILIZERS Source: IFA
oversupply on nitrogen-bearing fertilizers, million tons oversupply on carbomide, million tons oversupply on phosphoric acid, million tons
SELIGDAR APPATITE DEPOSIT
MINERAL RESERVES*
apatite ore – 1,277,177 thou tons
phosphoric oxide (Р2О5) – 85,587 thou tons
rear earth metals ∑ TR2O3 – 4,410.4 thou tons
average content of Р2О5 in apatite ore – 6.77%
Building stone: dolomite rocks, syenite porphyries, gneisses, crystalline schist – 353,242 thou cu. m
*as of Jan. 1, 2014, for the В+С1 category
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PRODUCTION CAPACITY OF SELIGDAR MCC
MINING AND PROCESSING INTEGRATED WORKS
opencast with 30m tons of ore and 18.9m cu m of stripping
ore-dressing plant
CHEMICAL PLANT OF COMPOUND PHOSPHORIC MINERAL FERTILIZERS567 thou tons per year
BLASTING COMPOUNDS AND OVERBURDEN ROCK CONSTRUCTION MATERIALS PLANT
Annual output of the MCC:
apatite concentrate (Р2О5 – 35,5%) – 3m 286 thou tons
compound phosphoric mineral fertilizers – 567 thou tons
crushed stone for construction -10m tons
sand – 1m 200 thou tons
dolomite powder -10m tons
industrial explosives – 35 thou tons (including for sale – 7 thou tons)
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KEY PARAMETERS OF SELIGDAR MCC PROJECT*
* Data of Feasibility Report 2007
Estimated investments 1.5bn USD
including into infrastructure 130mn USD
Recoupment time 8.8 years
Number of workplaces 3,500
IRR 31.3%
Tax proceeds after reaching full output capacity
5.2bn rubles a year
Construction period 6.5 years
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INFRASTRUCTURE FOR SELIGDAR MCC
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For the MCC to function properly, transport infrastructure and electric grids need to be created on the principles of public-private partnership:
Power supply:
7.5 km of 220 KW HVL for Seligdar MCC and a substation;
Transport infrastructure:
13-km-long railway line from railway station Kosarevsky to Seligdar MCC.
Forming an SPV company and obtaining the license
Design
Preparatory works
Construction on a building materials plant
Construction on a powder-mill (explosives plant)
Construction on an MPIW
Construction of chemical works
Months from the start - 6 12 18 24 32 38 42 48 54 60 66 72 78
SELIGDAR MCC PROJECT DELIVERY SCHEDULE
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CONCLUSIONS
STRENGTHS
large apatite ore reserves;the trend towards further growth of the phosphoric fertilizers market, including in the APR;lack of competition in the Far East;acceptable economic efficiency;availability of transport and energy infrastructure.
POTENTIAL
Increasing production volumes given the favorable conditions on global markets of phosphoric fertilizers;raising the project effectiveness and resilience in relation to market fluctuations due to the integrated utilization of raw stuff and the development of accompanying production capacities;government support of infrastructure and REA creation;preferential railway service and electric power rates.
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PROPOSAL FOR INVESTORS
WE INVITE INVESTORS TO CREATE SPV FOR:
participating in the auction for the right of developing the Seligdar apatite deposit (initial payment for the right of using the deposit is up to 4bn rubles);
Seligdar MCC construction project delivery.
Stakes in SPV:
investors - 75% minus 1 share
South Yakutia Development Corporation: 25% plus 1 share
THE CORPORATION WILL PROVIDE FOR:
draft feasibility report preparation;
essential permits and formalization of land plots,
on-site interaction with suppliers and contractors;
personnel recruitment and the launch of operations;
government support of the project;
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+7 (495) [email protected]
http://www.sy-corp.ru
SOUTH YAKUTIA DEVELOPMENT CORPORATION
Thanks for your attention!
11b Seleznevskaya St, Moscow, 127473