Mining company Baimskaya

The Project is the construction of a mine and processing plant for exploitation of copper, molybdenum and gold from the Peschanka copper-porphyry deposit (Chukotka AO) commencing in 2021. Copper and molybdenum concentrates would be shipped out from the Pevek port.

The Project Proponent is GDK Baimskaya LLC (the Company), which owns the license to survey, explore and develop the deposit.

The Company plans to attract financing from International Finance Institutions (IFIs) for the Project. As such the Company is developing a Bankable Feasibility Study (BFS), including an Environmental and Social Impact Assessment (ESIA) in compliance with the IFI's requirements, particularly, the Equator Principles and the International Finance Corporation (IFС). In addition, Project Design documentation is being developed in accordance with the Russian legal requirements and a Russian EIA (OVOS) for the Project will be conducted too.

Fluor Canada Ltd. (Fluor) was awarded the Engineering, Procurement, Construction and Management (EPCM) services for the Project. GDK Baimskaya LLC is directly managing the design of the mine, and all other facilities are designed by third parties.

Ecoline Environmental Assessment Centre (Ecoline EA Centre), an environmental and social consultancy, has been appointed to complete the required environmental and social assessments for the Project – the ESIA and the OVOS. The ESIA is being prepared by the Ecoline EA Centre jointly with SE Solutions (South Africa); the OVOS will be developed in cooperation with Russian consultants.
Peschanka Deposit

The Peschanka gold-copper-molybdenum deposit is in north-eastern Siberia, Russia, in the Bilibinsky Municipal District of the Chukotka AO. The deposit was discovered in 1972 and since then has been studied and further explored.

In 2011, the Company commissioned a TEO (the Russian equivalent of a feasibility study) to determine what would be required to commercially exploit the deposit. The mineral resources of the deposit were estimated using 0.40 % copper equivalent cut-off grade; a Measured and Indicated Resource of 1.3 billion metric tonnes of ore was defined.

In 2016, a JORC geological model was developed that indicates 1,428 Megatonnes (Mt) of Measured and Indicated ore and 774 Mt of Inferred and Unclassified ore.

In 2017, the Final Mining Feasibility Study was completed, and ore reserves were estimated. The 2017 TEO estimates 1.24 Bt reserves of sulphide ore (cut-off grade of 0.4% of copper equivalent).
Location of the Project Components

The Project is the construction and operation of the Baimka Mine and Processing Plant within the Baimka license area and a marshaling yard in the vicinity of the Pevek port. The proposed mine and processing plant site would be in the Peschanka-Yegdegkych River catchment, 187 km southwest of Bilibino and 650 km west of Anadyr. The marshaling yard will be established some 20 km from the town of Pevek.
Baimsky Processing Plant and Mine

The proposed mine and processing plant comprise the following key production facilities:
· an open pit mine that will consist of three pits,
· overburden and waste rock dumps,
· ore stockpiles,
· a concentrator (processing plant), and
· a tailings storage facility (TSF).

Mining operations:
the deposit will be mined as an open pit using a conventional shovel and haul truck operation. The key mining operations include drilling and blasting, overburden stripping and mine pit establishment, excavation and haulage of ore and waste rock from the pits, and establishment of waste rock dumps and ore stockpiles. Auxiliary mine works would include pit dewatering, in-pit dust control, in-pit electrical distribution, and pit slope monitoring.

Excavated ore would be transported to the concentrator located approximately 2 km from the open pit limits. Ore processing is one of crushing and grinding the ore and separation of desired minerals from the gangue using flotation. The concentrator is designed to process 70 Mt/a and produce approximately 1.5 Mt/a of copper sulphide concentrate at 24% copper along with approximately 13,000 tonnes per annum (t/a) of molybdenum concentrate.

The waste product from the concentrator (tailings) would be disposed in a tailings storage facility (TSF) located in the Peschanka-Yegdegkych River valley. The TSF is designed to be capable of disposing 2.349 Bt of copper tailings over the life of the mine. Process water would be reclaimed from the TFS, and the impoundment capacity will be enough to ensure process water supply for the concentrator during a given 12-month period (ca. 40 million m3). The TSF will be a 'zero discharge' facility.

The auxiliary facilities of the proposed mine and processing plant include:
· an explosives manufacturing and storage facility,
· a construction camp (at the constrution phase),
· an operations camp comprising offices, accommodation, a canteen and clinic facilities, stores, recreational facilities and so forth,
· industrial and potable water supply systems,
· sewage treatment plants,
· a waste incinerator,
· workshops,
· a site refueling facility,
· an analytical laboratory,
· electricity supply and distribution,
· service roads connecting the various site components, and
· an aerodrome (before its commissioning – a helicopter pad).
Marshaling Yard near Pevek

The stand-alone marshaling yard at Pevek would be established at the beginning of the construction phase to facilitate import of goods and equipment for the Project. Those goods and equipment will be delivered by sea during the shipping season and stored at the marshaling yard before being transported to the mine and processing plant site.

During the operations phase the yard will be used for temporary storage of incoming goods and equipment destined for the Project and finished products delivered from the mine and processing plant site, destined for customers.
The marshaling yard would be established some 20 km from the Pevek port.
Transport Infrastructure, Electricity, Fuel Supply and Communications

Transport infrastructure: goods will be transported to the mine and processing plant site by truck. There is currently no permanent road connection to the Peschanka deposit. There is a long-term state plan to develop a permanent road from Magadan to Anadyr, which will pass close to the main Project site. A connecting road from the mine to that new road would then be etsabslihed. It is assumed that the permanent road to Pevek and the connection to the mine and processing plant site would be completed by the start of operations of the processing facility. During the construction phase the Project will use winter roads for access.

The Project includes an aerodrome for transportation of shift personnel to the mine and processing plant site during construction and operations. An on-site helicopter pad will be established to provide emergency evacuation to Bilibino until the aerodrome is operational.

Two electrical utilities are planned to supply electricity to the proposed mine and processing plant site: a 220 kV transmission line from Magadan and a 110 kV transmission line from Pevek. In addition, there will be an emergency diesel generator system at the mine site.

Fuel supply: diesel fuel will be transported from Pevek by tanker truck to tanks located adjacent to the mine operations complex area.

The communications system will comprise a site-wide fibre optic network with a link to Magadan by a digital trunked radio channel; and a plant wide business LAN complete with Voice-Over-Internet-Protocol (VOIP) telephone. The plant site will have Wi-Fi and LTE coverage.
Environmental and Social Impact Assessment

The Company plans to attract financing from International Finance Institutions (IFIs) for the Project. As such the Company is conducting an Environmental and Social Impact Assessment (ESIA) in compliance with IFI requirements, particularly, the Equator Principles and the requirements of the International Finance Corporation (IFС).

An ESIA Scoping study is the first stage of the ESIA process; its purpose is to scope the assessment needed for the environmental and social impacts of the Project. The assessment findings are then presented in the main ESIA Report.

Measures to prevent, mitigate or offset expected negative impacts are presented in an Environmental and Social Management Plan (ESMP) developed during the ESIA stage.

The draft ESIA Scoping for the Project is available for review by stakeholders.
Key Environmental and Social Impact Assessment

Key Project-related impacts on the environment and society, which were identified during the ESIA Scoping study are briefly outlined below. These impacts will be assessed in detail during the ESIA. Measures to prevent, mitigate or offset expected negative impacts will be also developed and presented in an Environmental and Social Management Plan (ESMP).

Impacts of the proposed mine and processing plant on ambient air quality would be caused by dust emissions (e.g. from the TSF surface, drilling and blasting, in-pit mining operations, ore and waste rock hauling, etc.) and emissions from fuel burning equipment (carbon oxides, nitrogen oxides, and sulfur oxides).

The Project would contribute to the climate change due to greenhouse gas emissions (carbon dioxide and methane) arising from fuel burning in vehicles and equipment, consumption of electricity by the proposed mine and processing plant facilities and the thawing of permafrost after pre-stripping and topsoil removal for the on-site facilities.

Impacts on surface water would be caused mainly by the construction and operation of the TSF; the expected impacts of the facility would include direct impacts on the Peschanka-Yegdegkych River and its tributaries, the valleys in which the facility will be built, and potential indirect impacts on the other watercourses crossing the license area.

The Project would also have a potential impact on groundwater within the license area. The hydrological regime may change due to raw water abstraction for domestic purposes, dewatering of open pits, and groundwater inflows to the open pits from subpermafrost aquifers intersected by mining operations. Groundwater quality may change as a result of seepage of contaminated water to groundwater aquifers underlying the TSF site, ore stockpiles, waste storage areas and other sites..

Biodiversity impacts would include, inter alia, impacts on vegetation (forest clearing at the sites of proposed facilities, dust deposition and inhibition of plant growth around the areas with intensive dust emissions), on wildlife (including scaring terrestrial animals away from the mine and processing plant site), on ecosystems (habitat loss, and potentially increased risk of anthropogenic fires), on biological resources (possible unregulated wild plant harvesting and poaching).

Impact on soil cover would result from the irreversible transformation of disturbed lands and risks of leaks/spills of hazardous materials (especially fuels) used on site.

The Project would result in several positive socio-economic impacts e.g. increase tax revenues (up to 9 billion Rubles per year), creation of new jobs (up to 5,000 jobs at the construction stage and between 200 and 1,000 jobs during the operations phase), increased demand for goods and services including freight transportation services. Potential negative impacts may result from workforce migration: increased incidence of social diseases, increased load on the existing social infrastructure, and risk of social conflicts.

The potential impact on indigenous people would be caused by the proposed access road to the mine and processing plant site crossing lands traditionally used by the Burgakhchan Community as pastures for reindeer farming.

Stakeholder Engagement

During the ESIA Scoping an initial version of a Stakeholder Engagement Plan (SEP) was developed. The SEP identifies key groups of Project stakeholders, proposes a general approach to stakeholder engagement and consultation with stakeholders on environmental and social aspects of the Project. The SEP also describes a proposed external grievance mechanism.

The SEP will be revisited and updated during further stages of the Project development and implementation.
How can you participate?

Those interested in receiving further information on the Project and sharing any relevant information may review the ESIA documentation and provide comments on the documents at the specially organized public visitor centers.

Questions on the Project can be communicated in oral or written form to GDK Baimskaya via:

Ecoline Environmental Assessment Center NPP
(Environmental and Social Consultant)
Anna Kuznetsova
Bolshaya Tatarskaya Street, 21/8., Moscow, 115184
baimka@ecoline-eac.com
+7 (905) 574-46-92

Public visitor centers

Bilibino,
Bilibinskaya Municipal District Library

Director
Albina Spasova,
Bilibino, Lenina Street, 7
LVT-50@yandex.ru
+7 (42738) 257-31

Pevek,
Pevek Urban District Administration

Natalya Vukvukay
Pevek, Obrucheva Street, 29
chaunadmin@mail.ru
+7 (42737) 415-55

Tan-Bogoraz Public Library
Olga Pakhomova
Anadyr, Otke Str., 5.
chopub@bk.ru
+7 (42722) 261-53

GDK Baimskaya LLC

Anadyr office
Ruslan Silantyev
Dezhneva Street 1, bld. 1, Anadyr, Russia 689000
ruslan.silantyev@kazminerals.com
+7 (427) 226-02-98

Moscow office
Maria Starkina
Sadovnicheskaya Street, 4, bld. 1, Moscow, Russia 115035
maria.starkina@kazminerals.com
+7 (495) 777-31-04 ext.1156
Предоставлено: (C) 2019 GDK BAIMSKAYA
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