The company intends to produce up to 30Koz of gold equivalent (GE) at the mine, with average production of 180Koz per annum in 2022-2024
Precious metals mining company Polymetal has produced the first concentrate from its Nezhda gold and silver mine located in Russia.
According to the company, all the construction and commissioning activities at Nezhda have been completed, and the first production is two weeks ahead of the target date.
Also, the 2 million tonne per annuam (Mtpa) open-pit mine and combined gravity or flotation concentrator were built within 38 months from the final construction decision.
The concentrator will enter a ramp-up period, and is anticipated to reach its nameplate capacity of two million tonnes per annum by April next year.
Upon entering into full ramp up, the project’s total expenditure is expected to reach around $370m, said Polymetal.
The company intends to produce up to 30Koz of Gold Equivalent (GE) at the mine, with average production of 180Koz per annum in 2022-2024.
Polymetal CEO Vitaly Nesis said: “Starting production on schedule, first announced in Q4 2018, demonstrates Polymetal’s executing strength in the face of multiple challenges.
“The mine should ramp-up to full capacity and start generating free cash flows by Q2 2022”.
Polymetal purchased the Nezhda mine from entities owned by Ivan Kulakov in 2018.
Nezhda holds a JORC-compliant ore reserve estimated at 4.4GEMoz at a grade of 3.6g/t with 24 years of mine-life, along with additional 8.1Moz of GE at 5.1g/t grade.
The company pledged that 100% of energy for Nezhda will be sourced through a power line that is currently under construction, starting from Q3 2022.
The grid connection is expected to result in 65% reduction of Green House Gas emissions from the mine, from 118Kt to 42Kt per annum.
Its emission intensity level would remain at 624 kg CO2e/oz GE in 2023, which complements the company’s efforts for reduction of carbon footprint.
Nezhda is expected to create more than 1,000 permanent jobs and generate more than $20m in annual revenue for the government, in the form of taxes.