Aricom, the Anglo-Russian developer of mineral resources, has announced its intention to change the operational plan for its Kuranakh project in Russia's Far East, due to the current market conditions.
Accordingly, Aricom is to suspend its sales of pre-concentrate and is to scale back mining activities, in order to minimize its operating costs. In the meantime, the company intends to await the commissioning in mid-2009 of the Olekma beneficiation plant.
"Despite this short-term setback, we are confident that the Kuranakh project will be a profitable contributor to the Aricom portfolio when the Olekma plant is commissioned in 2009, and will help realize sales of the higher margin iron ore and ilmenite concentrates even in this depressed market," Aricom CE Jay Hamro stated.
The capital expenditure required to finalize the Kuranakh project is expected to be about $30 million.