License UDE Nr 13040 TE for  extraction of polymetal ore at Kholodninskoye deposit in the North-Baikal district of the Republic of Buryatia was issued on March 29, 2005 and is valid until 2025. The licensed allotment is located 36 km north of Kholodny Razyezd railway station (BAM), 70 km from Nizhneangarsk district centre with more than 5 600 population.

Resource potential of the Kholodninskoye deposit makes it one of the world largest polymetal ore deposits, containing up to 30% of Russia zinc reserves and about 15% of lead. 

Approved reserves of Kholodninsky polymetal ore deposit (Protocol of the USSR State Commission on Mineral Reserves (GKZ) Nr  10519 of 26 October 1988)

* The ore contains cadmium, indium, selenium, tellurium and silver (28 g/t).

Estimated resource potential according to JORC

* There is a technology allowing to obtain:

• Lead concentrate with  55 % Pb grade and 76 % recovery;
• Zinc concentrate with 55 % Zn grade and 92 % recovery.

The Government of Buryatia considers the Kholodninskoye deposit development to be of prime importance both for social and economic development of the region and Baikal-Amur mainline zone, and for Russian industry supply with homemade lead and zinc.

From the moment of license obtaining the Corporation has implemented a range of measures related to environmental compliance:

• There have been conducted regular ambient monitoring at the deposit in accordance with the programmes approved by Buryatia Regional Department of the Federal Service of Environmental, Technological and Nuclear Surveillance (Rostechnadzor);
• There have been fixed the deposit “zero point” providing ecological and geochemical data on the deposit before its development.

The following large-scale researches have been carried out:

• Baseline study (hydrosphere) within the area covered by mining works at Kholodninskoye deposit (2005, 2006, 2007; RAS Siberian Branch, Hydromet);
• Environmental audit (phase 1.5 and baseline studies with a limited sampling, EPM company);
• Environmental monitoring (subsoil, water bodies, soils, bioresources) in the mining zone at Kholodninskoye deposit (2006, 2007, 2008).

Results of studies undertaken

It has been ascertained that to the greatest extent environment had been affected by industrial activities prior to license obtaining (already from 60th) as a result of waste disposal and industrial waste water discharges with no required environmental measures undertaken.  In fact the deposit was opened by two lengthy adit levels which from the period of site exploration up to present carry up concentrated compounds of metals of 1 and 2 group of toxicity.

According to researches of the Moscow State University Geographical Department carried out in summer 2009 there exists a geochemical effect of Kholodninskoye lead and zinc deposit on the subordinate water bodies which could be traced downstream Kholodnaya river, though in general  it should not exceed the high levels of pollution and could not endanger Baikal Lake significantly. For more detailed assessment it is necessary, along with hydro chemical sampling, to carry out monitoring, to study river discharge and to evaluate the influence on other landscape components.

Preliminary estimation of Kholodninsky GOK capasity

Project implementation status

Within the period 2005-2008 there was carried out a substantial volume of pre-project survey and design works according to Russian and Western standards:

• The FS (Feasibility Study) of deposit development first stage («PiterGORproject»);
• The FS of permanent exploration standards («Sibtsvetmetniiproekt”);
• In accordance with the FS an ecologically sustainable project of backfill mining has been adopted;
• A set of measures to minimize the negative impact of mining on environment has been stipulated;
• Surface landscape remains undisturbed as no open mining is to be carried out;
• The developed mining technology allows to avoid the formation of rock dumps and processing waste storages on the deposit surface;
• Negative impact of ore processing waste  will be eliminated by locating tailings management facilities 25 km away from the site, outside the Baikal Lake watershed;
• The FS has been studied by the Scientific and Technical Council of the Ministry of natural resources of the Republic of Buryatia and the Federal Agency on Mineral Resources “Buryatnedra”. The FS was favorably received and it was recommended to submit the FS to the Federal State Department of the “State  Committee on Mineral Reserves (FGU «GKZ»);
• There have been drafted and approved the preliminary Feasibility Study (PFS) (AMC Consultants);
• All necessary scoping study has been fulfilled;
• There has been worked out a technology allowing to carry out polymetal ore mining at Kholodninskoye deposit without damage to environment of the Central ecological zone of Baikal Natural Territory.