Amur considering financing options for Russia nickel/copper project

JOHANNESBURG (miningweekly.com) – The board of Amur Minerals is considering multiple financing pathways for its flagship Kun-Manie nickel/copper project, in the far-east of Russia, including the possibility of strategic partners and the involvement of various export credit agencies (ECAs).

London-based corporate advisory firm Medea Capital has provided the Aim-listed development company with a strategic advisory paper, which concluded that there is available market capacity for investment by a strategic partner and that ECA-covered debt project financing is available for the development of the project.

“Medea's comprehensive report has provided the company with the basis for developing a detailed plan and roadmap to full project financing. I look forward to updating the market as we develop and implement this strategic plan and as the company further focuses on its role in developing the Kun-Manie asset," said CEO Robin Young on Monday.

On the advice of Medea, Amur is updating the prefeasibility study for the project to provide the market with updated project economics.

Kun-Manie represents one of the largest potential sulphide nickel operations in the world. The project has a 101.3-million tonne ore resource, containing recoverable nickel, copper, cobalt, platinum and palladium, with an average nickel equivalent grade of 1.03%. The total nickel equivalent tonnage is 1.04-million tonnes.

Amur has the right to recover 100% of the contained metal based on a 20-year production licence expiring July 1, 2035.

Engineering and metallurgical testwork has established a first-stage production plan, targetting output of six-million tonnes a year of ore, generating about 50 000 t of nickel.