Russia-based diversified mining, metals and energy group En+, owned by Russian billionaire Oleg Deripaska, has agreed with a consortium of five South Korean investors, including state- owned Korea Resources Corporation (Kores), to create a joint venture (JV) for the development of the Chinea iron and copper ore deposit in Russia's Transbaikal region, Siberia.
Accordingly, the new JV will be registered in Russia, with En+ keeping a controlling stake of 50 percent plus one share in the project through its subsidiary Strikeforce Mining and Resources (SMR).
Meanwhile, the South Korean side, owning the remaining stake, will invest at least $1 billion, including in the construction of a new mining and processing plant and of necessary infrastructure. The final amount of investment is going to be determined later.
The new JV will mainly produce iron ore concentrate, and the possibility of the construction of a new iron and steel works at the deposit may be considered in the future.
The Chinea deposit has proven reserves of around one billion mt of titanium magnetite iron ores, while its probable reserves amount to about 30 billion mt.