GMC Global Energy to build ore mining and dressing plant in Belarus
2011-10-05    Belarus and the company GMC Global Energy plc (Great Britain and Northern Ireland) signed an investment agreement on 5 October to build an ore mining and dressing plant with the output capacity of at least 1.1 million tonnes of potassium chloride, BelTA has learned.

The document was signed after a meeting of Prime Minister of Belarus Mikhail Myasnikovich and Mikhail Gutseriyev, a Russian businessman and philanthropist, the owner of GMC Global Energy plc.

The investment project provides for setting up an enterprise in Minsk Oblast to make potash fertilizers using the Nezhinsky (eastern part), Smolovsky, and Lyubansky sections of the Starobinskoye potash salts deposits. Commercial reserves of the Nezhinsky section alone that the investor will get are estimated at 750 million tonnes of ore.

The investor is supposed to fully explore the subsurface assets, including geological surveying, and extract recoverable resources. The investments for the project are estimated at $1.5 billion at least. The project will be implemented in 2012-2020. The enterprise is supposed to reach the designed capacity in 2021.

The project will allow creating Belarus’ second largest producer of potash fertilizers after OAO Belaruskali. It will increase the export potential of the Belarusian economy. The enterprise will create over 1,500 jobs, giving a powerful boost to the development of Minsk Oblast.

The press service of the Belarusian government told BelTA, foreign investors show considerable interest in Belarus’ subsurface assets. Experts estimate that the country can attract $6-7 billion in FDI for exploiting national mineral resources. The resources include deposits of crushed stone (Sitnitskoye), brown coal (Brinevskoye, Lelchitskoye, Zhitkovichskoye), shale oil (Turovskoye and Lyubanskoye), iron ore (Okolovskoye and Novoselkovskoye).

There are plans to hold the first stage of the international tender to choose the investor for exploiting the Petrikovskoye deposit of potash salts by the end of the month.

BELTA

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