Saint-Petersburg, Russia, 23 July 2021 - ROSATOM and GDK Baimskaya LLC have signed an agreement to jointly implement a project to supply power to the Baimsky mining and processing plant (Baimsky GOK), which is located in Russia’s Chukotka Autonomous Okrug. The agreement was signed by ROSATOM Deputy Director General and Director of the Northern Sea Route Directorate Vyacheslav Ruksha and GDK Baimskaya LLC’s Chairman of the Board of Directors Oleg Novachuk. The signing ceremony took place as part of the ROSATOM-organised event “Arctic Day.”
The parties agreed that they would conclude a long-term “take-or-pay” contract for the sale and purchase of electricity by April 2022.
ROSATOM has proposed using optimised floating power units (OFPU) to provide electricity to the Baimsky GOK. These units are already under construction at ROSATOM’s machine-building division, Atomenergomash.
“We expect to build four power units: three main units and one standby unit that will be used during the repair or refueling of one of the main units,” said Vyacheslav Ruksha.
Ruksha noted that the first two units are expected to be delivered to their working location in the water area of ??Cape Nagleynyn and connected to power lines leading to the Baimsky GOK at the end of 2026; the third unit will be connected at the end of 2027.
An important part of the agreement is the parties’ intention to assist in changing current Russian legislation concerning the electric power industry to allow for more efficient investment in the Arctic. The parties maintain that change is necessary to create effective mechanisms by which to repay investors who develop long-term projects in the Arctic.
“The conclusion of a long-term electricity purchase and sale agreement between ROSATOM and GDK Baimskaya LLC will become the most important events in the largescale programme for the development of the Russian Arctic,” said Oleg Novachuk at the signing event.
Notes to the editor:
This agreement has been concluded in the framework of a comprehensive roadmap for the implementation of investment projects for the development of the Baimsky metallogenic zone. This roadmap (No. 5645p-P9) was approved by Russia’s Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District Yury Trutnev on 7 June 2021.
ROSATOM is a global technological leader, with capacities in the nuclear sector and beyond, and business partners in 50 countries. As one of the pioneers of the nuclear industry, ROSATOM has traditionally been at the forefront of the international nuclear market, including nuclear power plant construction, uranium mining and enrichment, and nuclear fuel fabrication and supply. To thanks to the unique expertise accumulated over 75 years, the company is conquering the markets of new promising high-tech products. Hydrogen energy, energy storage, nuclear medicine, wind energy, composite materials, logistics business, environmental solutions - in total, more than a hundred new businesses, which cement ROSATOM’s standing among the leading tech giants.
GDK Baimskaya LLC is developing the large Peschanka copper deposit, which is situated in the Baimskaya licensed area of Russia’s Chukotka Autonomous Okrug. It is estimated that the deposit contains 9.9 million tonnes of copper with an average grade of 0.39% and 16.6 million ounces of gold with an average grade of 0.21 g/t. Both estimates have been recorded in accordance with the JORC code. The project’s construction budget is estimated at $8 billion.