Polymetal International Plc said Feb. 21 that it signed its first off-take contract for high-carbon concentrate from its Kyzyl gold-copper project in Kazakhstan but did not name the buyer.
The buyer, an established trading partner of the company, will purchase 50% of forecast production in 2018 from Kyzyl, with the company retaining the option to increase this amount to all of the project's annual concentrate production.
The company will deliver the concentrate from Kyzyl to the seaport of Vladivostok via railway, and the buyer will then ship the concentrate for further processing at roasters in eastern China or elsewhere.
Polymetal plans to process low-carbon concentrate at the debottlenecked Amursk POX facility in Russia, but it can choose to direct the material to off-take.
The company expects CapEx in 2018 of about US$400 million, mainly for completion of Kyzyl and POX debottlenecking projects.