copper mining
IN PHOTO: A worker stokes a furnace to melt the copper at the plant of Uralelektromed Joint Stock Company (JSC), the enterprise of Ural Mining and Metallurgical company (UMMC), in the town of Verkhnyaya Pyshma outside Yekaterinburg, October 17, 2014. REUTERS/Maxim Shemetov

After securing its production licence from the Russian government, Amur Minerals Corporation (London AIM: AMC) has immediately taken the next step in its production plans by registering its new 36-square kilometre licence with the State Geological Fund. The company has also paid the one-time fee of 23.6 million roubles [$560,000] to officially complete the transaction.

Rosnedra has already officially issued the production licence for Amur Minerals' Kun-Manie project, which contains the terms already negotiated during their discussions in 2014. Aside from listing down all the coordinates of the licence boundaries, the six-page document also states that termination of the licence has been extended from the end of 2034 to July 1, 2035, due to the delay associated with the licence approval.

"The Russian Government, particularly Rosnedra, has acted quickly and efficiently to expedite the issuance of the Kun-Manie production licence," remarked Rob Proctor, Amur Minerals CEO. "The licence is now officially assigned and we are pleased with the terms and conditions as negotiated by our staff and the Russian authorities."

The nickel copper sulphide miner has also submitted its detailed exploration and pre-production plans to the Russian government. These plans, called the "Proekt," need to be approved by December 2015. Additionally, the results of the pre-production evaluation have to be presented by Dec. 1, 2020, along with a mining plan no later than June 1, 2022. All these terms represent negotiated deadlines, although Amur Minerals plans to accelerate the move to production by completing documentation early on.

"We have considerable flexibility to advance the project as swiftly as possible. Our push to accelerate toward a production decision is in the interests of our shareholders as well as the Russian Government," Proctor said.

One year before decommissioning of facilities, Amur Minerals is expected to submit a re-cultivation or site remediation plan to the Russian government. In addition, annual activity reports must be submitted to Rosnedra and Amurnedra, its Amur representative.

The Kun-Manie project, Amur Minerals' flagship project, consists of five identified reserves and resources, namely Kubuk, Gorny, Ikenskoe/Sobolevsky, Vodorazdelny and MalyKurumkon/Flangovy. The Kubuk maiden reserve alone is estimated to contain 20.6 million tonnes of ore averaging 0.58 percent nickel and 0.16 percent copper per tonne. Aside from copper and nickel, the Kun-Manie project is also expected to mine platinum and palladium.

Located in the Russian Far East near the Chinese border, the Kun-Manie project is considered as a potential key driver for economic growth once production starts. Earlier this year, officials of the company met with Amur Oblast Governor Oleg Kozhemyako to discuss the development of the access and power infrastructure requirements for the project. The parties also concurred that the project is capable of providing more than 1,000 jobs and additional revenues to the region.

Shares of Amur Minerals closed at 31.00 per pence on Wednesday, up by 5.69 percent from the previous day's close.

Contact the writer: a.lu@ibtimes.com.au