Amur Minerals Corporation - AMC Stream Log

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China and the Far East are willing to cooperate: 17-18 April 2014 in Vladivostok met Deputy Prime Minister Dmitry Rogozin and Vice Premier of the State Council of China, Wang Yang, the co-chairs of the Russian-Chinese Committee on Regular Meetings of Heads of Government. During the meeting, Deputy Minister of the Russian Federation on the development of the Far East Shereikin Maxim introduced the Chinese side investment initiatives of the Ministry, especially projects of regulation and creating areas of advancing social and economic development (TOR) in the Far East. PRC representatives expressed keen interest in participating in infrastructure investment and a willingness to discuss TOR specific terms the arrival of Chinese investors in the Far East. The parties agreed that a detailed discussion with a wide range of Chinese investors to be held in the framework of the Russian-Chinese Expo in Harbin at the end of June 2014.

Relevant instructions given by Prime Minister following the report of the Minister for Development of the Far East Alexander Galushki. According to First Deputy Minister Alexander Osipov, the first stage of the common block of the state program, which, incidentally, includes FTP and development of the Kuril Islands, will be excluded activities which obviously can not be provided government funding. Thus, project filling the state program will be given in accordance with the budget limits. "In most of the Far East FTP are now only major infrastructure - modernization of the Baikal-Amur Railway, Trans-Siberian Railway, the construction of the local airports. All this, of course, need to do, but it would be better if I move these projects to the appropriate transport development program. And in the Far Eastern Federal Program to make projects that are in the high stage of readiness and in a short time can bring financial returns. This also should include the creation of areas of advanced development and related agencies working with investors and the working staff, "- said the first deputy minister. Minvostokrazvitiya already prepared on behalf of the Russian Government offers new editions of FTP and shaped for her preliminary list of projects with implementation period of two to three years. In the "short" list, according to A.Osipova, 28 projects selected from the analysis of more than 340. "First, they are all in high availability: land purchased, subsoil obtained, investors are willing to investments. Secondly, these projects high multiplier effect, that is one ruble budget investments attracted a large amount of private investment. For example, on the development Apsatskoe coalfield one budget ruble accounts for about 6 rubles extra investment, and Taishet Anode Factory - 34 rubles. In this list, there are some major projects as complex of refineries and petrochemical plants in Primorye, Nakhodka mineral fertilizer plant, a mine on Udokan deposit copper mine on the Natalka, freezing systems and canned fish production on Shikotan, "- said A.Osipov. Calculations show that the implementation of the selected investment projects in the coming years will allow to attract further to the Far East for more than two trillion rubles in investment, create 36,000 new jobs, create additional income for 10 years in the amount of 630 billion rubles. "We believe that it is necessary to extend the program until 2025, and, accordingly, consider its additional financing to at least 100 billion rubles annually. Meanwhile, budget commitments of the Russian Federation on the program are only in the amount of 171 billion rubles for three years ", - said the first deputy minister. In addition, under the new powers Minvostokrazvitiya intends to substantially increase government funding of the Far East under other federal programs. On behalf of the Government they will be allocated special sections or sub-providing activities (and their financing) for rapid development of the Far East, with an indication of indicators and key performance indicators. "In many of the studied programs we found clear distortions. For example, in the program of development of public health, taking into account the criterion of per capita funding is allocated on a Far East means 24 times less in comparison with the western regions of the country; social support of citizens - less than about 10 times; providing affordable and comfortable housing and communal services of citizens - by 2.3 times. New powers of the Ministry in coordination of government programs allow us to rectify this situation. No program without special section devoted to the Far East, will not be agreed upon, "- said Deputy Minister for Development of the Far East Kirill Stepanov. Draft regulations on the matter, according to the deputy minister, will be prepared and submitted to the Government of the Russian Federation to the end of this month. "Giving Russia Minvostokrazvitiya new powers to harmonize state programs, introduction of Far Eastern block and changing priorities of the Far East FTP subordinated main goal - to achieve a real improvement in the social, economic and investment climate in the region by funding priority Far key projects", - said K.Stepanov .

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Chapter Minvostokrazvitiya presented investment opportunities Far East participants Boao Economic Forum Minister of the Russian Federation on development of the Far East Alexander Galushka presented investment opportunities in the Far East under the new model of economic development to the round table "Russia from a resource economy to an innovation", which was held in the framework of the Asian economic forum in China. On the Russian side in the roundtable was also attended by the President of the RF CCI member of the governing Board of Directors AFB Sergei Katyrin and CEO RFPI Dmitriev. At the meeting discussed the interdependence of Russia and Asian countries, cooperation in the field of infrastructure, fuel and energy, agriculture, etc. Minister for Development of the Far East Galushka Alexander noted in his speech that not only Russia's economic development largely depends on the further development of Asia and the ongoing development of its eastern neighbors are closely connected with the growth of mutual trade with Russia, with the implementation of large-scale joint projects. The Minister said that the country's leadership taken serious steps to improve the investment climate in the Far East. He presented the meeting new approaches to development and macro-steps to establish a network of territories DFO advanced development, which will apply the best international practices in the field of business. A.Galushka also outlined the main points of the federal law on areas of advanced development, drafted by the Ministry and is under consideration of the Government of the Russian Federation. "Russian national priority of this century - accelerated development of Eastern Siberia and the Far East. Of course, the implementation of these priorities without mutual investment cooperation with Asia-Pacific countries we can not do. We look forward to working in various fields, including infrastructure projects. Business from Asia-Pacific countries could join the Trans-Siberian Railway and the large-scale modernization of the Baikal-Amur Mainline, to build capacity in the Northern Sea Route to ensure reliable transport flows from the Asia-Pacific region to Europe "- said A.Galushka.

Following the meeting with the head of Minvostokrazvitiya president of China Development Bank has confirmed its readiness to allocate $ 5 billion for development projects of the Far East.. The negotiations resulted in the Minister for Development of the Far East with President Alexander Galushki China Development Bank Zheng Zhijie bank reaffirmed its readiness to release $ 5 billion for development projects of the Far East. The parties also agreed on the following priorities investment cooperation: - The creation of areas of advanced development in the Far East; - Financing of infrastructure development; - Implementation of long-term investment projects in the Russian Far East. Agreed on regular personal contacts and intensification of bilateral relations.

Minister of the Russian Federation on development of the Far East Alexander Galushka during his working trip to the Primorsky Krai, told the "Autoradio" in Vladivostok on the work on updating the department of socio-economic development of the macro-and fundamentally new approaches to the implementation of projects that can integrate the Far East in the APR. Question: Alexander, there are fears that the events in Ukraine and related "sanctions" to frighten investors, pushed the Far East to the "wayside." A.Galushka: Fears unfounded. We are many and often deal with foreign investors, persons who make decisions - foreign events occurring to them are not hindering factor, they are willing to develop economic cooperation with Russia. With regard to federal agencies, and here no plans in connection with the entry of the Crimea in the Russian Federation "cut" funding for the region. Increased attention to the territory remains. Question: In the public mind the idea has taken root that Moscow sees the Far East only "corridor", a utility area, and not a full "living" area. Gap is not here? A.Galushka: I absolutely agree, it's one of the problems. I would say more, this "gap" program founded in the Far East development - rebuilt it as if it is a transit area, there is only transport objects - this is wrong. And believe me, it is very difficult to adjust this approach. We intend to develop a new target program, it will breakthrough projects around which inevitably begins to seethe life, there are whole clusters of small-medium sized businesses, social infrastructure, etc. Question: One of the proposed instruments "breakthrough" - the creation of areas of advanced development. The process has started? A.Galushka: In Primorye, we examined eight suitable sites, although there was much more represented. But the first stage selected the most qualified in terms of quality of land survey work, infrastructure readiness, logistics, etc. The volume of budget investments that can be held for more than two trillion rubles - this is only in the Primorye Territory. A budget for their implementation requires less than $ 200 billion - contrast the figures. That is, in our opinion, is the "effective control", when one official ruble we get more than 10 rubles of private investment. Question: Local business quite alert to the top, fearing unequal conditions. In particular, the dockers very zealously concerned to create economic port zones based on new projects. A.Galushka: Well, firstly, the existing ports can claim the status of the territory of advanced development when there are serious development programs that meet the basic parameters of TOR. Secondly, as practice shows, coming to a region with a new quality of investments and new technologies always increases the demand for local businesses to stimulate its development. Next to the "anchor" investor there is a lot of new productions, which before the territory was not at all. Question: At a meeting with the President, it was stated that as a "model" of the sample you offered top Russian island - what's the point? A.Galushka: It was about the creation of the island of Russian contemporary intellectual grounds, the point of attraction for the best specialists in Pacific Rim countries. In particular, we propose the creation of a Palo-based departments of leading companies, both Russian and foreign, that could prepare world-class specialists. (...)

[link] Minesite.com 25.02,14 Kun-Manie Has Been Completely Revamped, Says Amur’s Robin Young Within the next six-to-eight weeks, says Amur’s chief executive Robin Young, there should be significant new developments as regards the economics at the Kun Manie nickel project in Russia. As it stands, the last published information relates to a study that was completed back in 2007 by SRK Consulting. This showed a projected net present value of US$84 million on a resource that has now significantly increased following several subsequent seasons’ worth of drilling. It now stands at an impressive 830,000 tonnes of nickel equivalent, which makes it one of the top 20 nickel sulphide deposits in the world, according to Robin. The knock-on effects are immediately apparent. “We’re able to push far more tonnage through the plant in the earlier years”, says Robin. The latest Amur literature speaks of an increase in throughput capacity of the order of 50 per cent, and since the last study there have been considerable metallurgical improvements too. But that’s not all. More than six years on, the Russian tax regime is now far more benign. “The profit tax has been brought down to zero for five years”, says Robin, “and then to ten per cent for five years. And they’ve also graduated the royalty tax.” Precisely what difference that will make will become clear in due course, but in the original study the tax assumption was 24 per cent so it’s quite a change. “We anticipate improvements on the internal rate of return and the NPV”, says Robin That’s all to the good, but there are pressures too. “The two big issues are the road to site and the power line”, says Robin. The original 2007 plan called for 40 MW of power to help the company mine four million tonnes of ore per year from three open pits. Power was to be sourced via a new power line to be built by the state utility, and the costing of such a power line was put at around US$77 million. Now though, inflation has driven that estimated cost up by a factor of more than three, and on-site power instead looks a far more realistic option. Amur reckons it can put on-site power in for US$82 million, although the cost of the road to site will now grow beyond the originally budgeted US$140 million as it will need to be able to handle the transportation of fuel. “Our success is all about cracking this remoteness”, says Robin. “We’ve got to handle getting supply to site and power.”In the background is the newly-raised option of using Zeppelins, which given the vast distances and inhospitable conditions in Far Eastern Russia, isn’t as nutty as it sounds. SP Angel commented on the concept a few weeks ago, and the benefits could be significant. After all, building a road to Kun Manie capable of supporting fuel loads would cost, says Robin, between US$100,000 and US$1 million per kilometre. All-in, the total could ring in at as high US$250 million. Zeppelins, able to dock at various of the ports Amur will be using, would wipe that cost out altogether. As yet, a fleet hasn’t been put together. “We’re watching it closely”, says Robin. “We’re not committed.” In the meantime, let’s see what the upcoming release says about the economics. “This project has been completely revamped and redesigned”, says Robin. It’ll be interesting at last to get the detail.

Solutions from the meeting on the basic principles of creating and managing territories advancing socio-economic development of the Far East 20th Feb 2014. [link]

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