LONDON (dpa-AFX) - Copper producer KAZ Minerals Plc (KAZ.L) announced Friday that activity for the Baimskaya Project is expected to resume in due course.
Further, the Bankable Feasibility Study or BFS is now expected to be completed by the end of 2020 due to the additional time required to finalise the infrastructure plan for the Project, including Covid-19 related delays.
Progress on the BFS has been impacted by Covid-19 related issues with teams in Moscow and Vancouver required to work from home and restrictions on both domestic and international travel.
In its report on the updated parameters for the Baimskaya Project, based on feasibility study work completed to date, the company noted that work at the Baimskaya site in the second quarter has been limited due to measures taken to control the spread of the Covid-19 virus in the region.
Prior to the disruption, equipment and materials were delivered to the site for the pioneer works scheduled to take place during the year.
The company said its capital expenditure guidance of $150 million for 2020 remains in place.
KAZ Minerals and the Russian government are continuing to work together on the details of the power and transport infrastructure required for the operational phase of the project including potential take or pay agreements.
The timetable for construction remains around seven years. The company will release further details on the project upon completion of the BFS.
Oleg Novachuk, Chair, said, 'We are working to develop our execution strategy for the delivery of the Baimskaya copper project, one of the world's largest undeveloped copper assets. Study work and drilling completed so far at Baimskaya indicates that a larger project will unlock the potential of the world class Peschanka deposit.'
Copyright RTT News/dpa-AFX
© 2020 AFX News
