Sergey Ivanovich, could you tell us about the latest and successful purchase and investments of Polymetal to the new projects?
Among the recent Company’s projects in Kazakhstan are Bakyrchak and Komarovskoye fields, Shaumianskoye field in Armenia, and Olzha, Irbychan, Primorskoye and Svetloye fields in the Russian Far East. All of them are successful and are now in their development stage. In the Ural region geological exploration (GE) investments are currently made in seeking and identification of complex gold-copper and copper-zinc deposits. We are also interested in the projects invested in the Republic of Kazakhstan in which the successful one is the extension of Dolinnoye field and the estimate of mineral resources and ore reserves in accordance with international standards under the joint venture “Aktogai Mys”. We are now busy with investigating other projects of Kazakh subsoil users. There are also series of projects where we conduct test works and make decision according their results. I cannot tell for sure as it is confidential information of our partners.
From your working experience with new projects, what should be taken into consideration when cooperating with partners or previous owners?
It is general practice for our company when considering information about the projects to concentrate largely on actual information and the reliability of basic data. Then we study technique of the conducted works and the results estimated before us. I do not want to criticize my colleagues, just to note, what we should first pay attention on. In a nutshell, the flow chart is as follows: database check; verification and re-evaluation of mineral resources and ore reserves; analysis of geological and exploration methods applied and of proven reserves estimated; and correlation of detailed and operational exploration data. Based on the results, we carry out an update and optimization of geological and exploration methods.
Do you have to perform some extra mining or drilling operations to get more information about a project?
Sure. Since the company’s geological service is responsible for the projects of mineral resource base, test works are carried out the most. They are done by re-drilling of old wells and subsequent modeling of individual ore blocks to confirm evaluation of their resources, as well as the check of core sampling taken before us and of resampling analytics, the sample duplicate. Ore mud logging is performed. Sometimes we explore the entire project lands, I mean, the field explored ECONOMY previously in most cases do not meet the up-to-date requirements for mineral resources as for the data reliability.
What projects do you consider as the most promising for the company and for what reasons?
Nowadays “Polymetal” is interested in large and medium-scale deposits of precious metals, and also the small ones if they are close to our existing refining capacity. We find all projects which resources are economically advantageous to extract and refine attractive for us. In fact, it can be easily determined what we are particularly interested in when you study information about our company.
In your opinion, what is needed to be changed or implemented into the mining industry of Russia and Kazakhstan?
Firstly, it is necessary to change classification of reserves and bring it in line with international standards and current economic conditions. Secondly, the information on subsoil blocks shall be provided in a short time and without any difficulties. As an example of this can be the countries such as Australia, Canada, etc. Thirdly, regulatory framework is also needed to be reviewed as well as the procedures for the development and defense of the mining FS, calculation of reserves, entering and removing them from the state balance sheet are to be simplified. And, of course, there shall be supportive environment for development and successful work of the junior companies. It is a satisfaction to know that in Kazakhstan specialists of the mining industry are interested on their own in the new methods of projects’ evaluation. At the same time, the country has a complex licensing scheme of subsoil blocks and an outdated control system of subsoil users (exploration projects, reports, etc.). In conclusion I would like to add: do not hesitate to cooperate with the “Polymetal” Company, offer your projects! We will make an assessment based on facts with the use of up-to-date methods available. It is possible for you to make the big bucks with us!