Russia has expanded a development zone in its Far East to accommodate a proposed RUB667.4 billion ($11.7 billion) mining and processing complex at the Milkan iron ore deposit.
Prime Minister Mikhail Mishustin approved the inclusion of land in Khabarovsk’s Tuguro-Chumikansky district within the region’s priority development area.
The designation would give project operator Milkan access to tax concessions, administrative support, land without an auction, and a free customs regime.
The proposed operation is designed to process 54 million tonnes (Mt) of iron ore annually and produce up to 16Mt of direct-reduction pellets containing as much as 67.5% iron.
Direct-reduction-grade pellets can be used in steelmaking processes with lower emissions than traditional blast furnaces.
The development would include automated conveyors between the proposed open pit and processing plant, approximately 180km of railway, and a marine export terminal.
Commissioning is targeted for late 2032, according to the Khabarovsk Government.
Production would supply Russia’s Far East and export markets including China, India, and Indonesia, according to a report by Russia’s Pivot to Asia.
The regional government says Milkan would fund the required infrastructure without direct budget financing. The project is expected to support approximately 5,000 construction jobs and 3,200 permanent positions.
Russian design institutes are still conducting technical and economic studies to determine the project’s development plan. No construction start date, financing structure, or binding sales agreements have been announced.
The Milkan development is included in a portfolio overseen by the Russia-China Intergovernmental Commission on Investment Cooperation, although no Chinese investment commitment has been disclosed.
Write to France Pinzon at Mining.com.au
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