Canadian business ready to accelerate expansion in Russia in 2022

Yakshinskoye potash deposit, one of Russia’s largest potash deposits, located in the Komi Republic. Photo: Komionline

The Canadian business is accelerating its expansion in the Russian resources sector thanks to maintaining high global prices for metals and commodities.

An example of this became Stans Energy, a rare earth mining development company, which has recently announced its intention for the development of Yakshinskoye potash deposit, one of Russia’s largest potash deposits, located in the Komi Republic.

For this purpose, the company has signed a memorandum of cooperation with the Russian Tradepromservice company, which has been developing the field since 2010.

The agreement provides for an option to buy back 100% in the project. It is planned, implementation of the project will be jointly conducted by the sides. As part of plans of the partners, is assessing the reserves of the field, preparing a bank feasibility study and conduct pilot tests of the technology, that will be used for processing potassium and magnesium salts.

Ore mining will be conducted with the use of in-situ leaching technology, while the annual capacity of the new production will reach 1 million tons per year.

According to the German Ercosplan Group, the predicted resources of the Yakshinskoye field are estimated at 189 million tons of sylvinite as well 935 million tons of carnallite with potassium chloride contents of 23.9% and 13.9%, respectively.

This is a rather large deposit - for comparison: the reserves of the Ust-Yayvinskoye, another large Russian potassium field are estimated at 1.4 billion tons.

Most of Russian analysts expect the production capacity at the Yakshinsky potash deposit will be in the range of 250,000-300,000 tons of potassium chloride per year. According to their assessments, that will require investments in the range of US$350-500 million due to some specifics of geological structure of the Yakshinskoye field and its location in a remote region of Komi.

 

Analysts also believe the use of in-situ leaching is a promising direction in the development of potash deposits, while such approach is already used by the Canadian Gensource Potash and the American Michigan Potash.

 

Boris Aryev, Chief Operating Officer of Stans Energy Corp in an exclusive interview confirmed the project is a major undertaking for the company and will require serious resources to develop.

 

According to him, «the company is always looking at potential targets in former USSR but as with any prospect many variables have to fit to get prospect valid».

 

This is not the first project that Stans Energy is trying to launch in Russia. In 2016, the company signed a Memorandum of Understanding with the local Pervomaisky GOK on the joint restart of the local bankrupt Zabaikalsky mining and processing complex, which is owned by the Russian company as well a joint construction of a lithium carbonate production workshop. The Canadian company estimated its investments at that period of time of US$70.5 million (that would allow to gain the entire control over the company) however the project was never implemented. At the same time in the same year the company considered the beginning of lithium production in Russia.

Canadian business ready to accelerate expansion in Russia in 2022

 

 

 

The Canadian business is accelerating its expansion in the Russian resources sector thanks to maintaining high global prices for metals and commodities.

 

An example of this became Stans Energy, a rare earth mining development company, which has recently announced its intention for the development of Yakshinskoye potash deposit, one of Russia’s largest potash deposits, located in the Komi Republic.

 

For this purpose, the company has signed a memorandum of cooperation with the Russian Tradepromservice company, which has been developing the field since 2010.

 

The agreement provides for an option to buy back 100% in the project. It is planned, implementation of the project will be jointly conducted by the sides. As part of plans of the partners, is assessing the reserves of the field, preparing a bank feasibility study and conduct pilot tests of the technology, that will be used for processing potassium and magnesium salts.

 

Ore mining will be conducted with the use of in-situ leaching technology, while the annual capacity of the new production will reach 1 million tons per year.

 

According to the German Ercosplan Group, the predicted resources of the Yakshinskoye field are estimated at 189 million tons of sylvinite as well 935 million tons of carnallite with potassium chloride contents of 23.9% and 13.9%, respectively.

 

This is a rather large deposit - for comparison: the reserves of the Ust-Yayvinskoye, another large Russian potassium field are estimated at 1.4 billion tons.

 

Most of Russian analysts expect the production capacity at the Yakshinsky potash deposit will be in the range of 250,000-300,000 tons

of potassium chloride per year. According to their assessments, that will require investments in the range of US$350-500 million due to some specifics of geological structure of the Yakshinskoye field and its location in a remote region of Komi.

 

Analysts also believe the use of in-situ leaching is a promising direction in the development of potash deposits, while such approach is already used by the Canadian Gensource Potash and the American Michigan Potash.

 

Boris Aryev, Chief Operating Officer of Stans Energy Corp in an exclusive interview confirmed the project is a major undertaking for the company and will require serious resources to develop.

 

According to him, «the company is always looking at potential targets in former USSR but as with any prospect many variables have to fit to get prospect valid».

 

This is not the first project that Stans Energy is trying to launch in Russia. In 2016, the company signed a Memorandum of Understanding with the local Pervomaisky GOK on the joint restart of the local bankrupt Zabaikalsky mining and processing complex, which is owned by the Russian company as well a joint construction of a lithium carbonate production workshop. The Canadian company estimated its investments at that period of time of US$70.5 million (that would allow to gain the entire control over the company) however the project was never implemented. At the same time in the same year the company considered the beginning of lithium production in Russia.

By: Eugene Gerden