Kostantin Beirit, who oversees the miner’s operations, announced the company’s CAPEX forecast for the year in an interview with Interfax. The tin sector of the company will see an investment of 660 million rubles (US$ 10.75 million). Just 13% will be used for maintenance; the rest will go toward increasing production capacity.
Earlier this year, Seligdar announced that it would increase tin concentrate production by 60% during 2019. This follows investment at the Solnechnaya concentration plant. According to announcements made at the time, processing capacity was due to almost double in 2019, up to 400,000 tonnes/year. Solnechnaya currently processes material from the company’s Festivalnoye and Perevalnoye operations.
However, the biggest boost to production capacity is due to come from the development of the Pravourmiysk deposit. The company hopes to start construction in 2020. Located some 160 km south-west of Seligdar’s current operations, the new mine will have its own processing unit with a capacity of 600,000 tonnes/year. At full capacity, Pravourmiysk should produce some 5,000 tonnes of tin-in-concentrate. Seligdar previously announced a target of 6,000 tonnes of tin-in-concentrate by 2024.
Our view: Seligdar is still applying for its mining permit for Pravourmiysk. Construction and commissioning are still to come, meaning we are unlikely to see this mine enter the market until the second half of 2021. That will be a relief to the already well-supplied concentrate market: several mines are already slated for initial production this year, and others – including Bisie – are ramping up to full capacity.