RCC decided against development of the deposit in the South Urals

05.09.2016 — News

CHELYABINSK REGION

The Russian Copper Company (RCC) is not able to start development of the Birgildinskoye copper deposit for the reasons out of its control. As RusBusinessNews has been informed by the RCC Press Service, the development of the deposit located in the South Urals has been impeded by conflicting actions of different agencies and departments.

The license for geological exploration and ore mining at the Birgildinskoye deposit was awarded to the Tominsky Mining and Processing Integrated Works, JSC (an RCC subsidiary) by the Federal Agency for Subsoil Use (Rosnedra) back in 2011. However, later on, the regional department of the Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor) put a ban on development of the deposit area, as it is located within the second sanitary protection zone of the Shershnevskoye Reservoir. The ban was grounded upon Decree 465 issued by the Council of Ministers of the Russian Soviet Federative Socialist Republic on September 2, 1977.

On July 21, 2016 the Supreme Court approved and validated the applicability of the aforesaid Decree of the Council of Ministers.

Currently, the Tominsky Mining and Processing Integrated Works, JSC, is not able to perform its obligations of the license holder. In the near future, the situation will be discussed with Rosnedra.