RCC is investing around 66 billion rubles in Tominsky GOK

12.07.2017 — News

CHELYABINSK REGION

In the second half of 2017, the Russian Copper Company (RCC) is planning to go ahead with the construction stage of the Tominskoe porphyry copper ore deposit project in the Chelyabinsk Region.

As RusBusinessNews has been informed by Maksim Schibrik, RCC Finance Vice President, the investment made for 4 years will total 65.9 billion rubles, including VAT.

The project will be implemented in two stages. The plans till the end of 2019 include construction of a covered mine, underground infrastructure and Phase I of the processing plant with an estimated output of 14 million tons of ore a year. Phase II of the plant construction will be completed by the end of 2024 to reach the total output of 28 million tons of ore a year. The Tominsky Mining and Processing Plant (Tominsky GOK) will produce around 100-110 thousand tons of copper concentrate a year. RCC is planning to receive a building permit in the near future.

The RCC directors are optimistic about the outlook of copper prices. As Maksim Schibrik pointed it out, in early 2016 the price of copper was $4,600 per ton; then it started rising and hit $5,800 in early 2017.

Analysts agree that in the third and fourth quarters of this year the price will stay at around $6,000 a ton; in the next two years it will reach $6,200. The further forecast expects a price spike caused by shrinking supplies and increasing demand. If the consumption increases at 2.7% per annum, the primary copper production will demonstrate only a 1.1% growth rate in the next five years. The key drivers of demand growth are alternative energy as well as manufacturing of hybrid and electric cars.