Wall Street Developer News One of six tungsten production facilities is being closed in Russia

One of six tungsten production facilities is being closed in Russia

One of six tungsten production facilities is being closed in Russia post thumbnail image

Primteploenergo has decided to liquidate the Lermontovsky mining and processing plant (GOK), which belongs to it – one of the six existing producers of tungsten concentrate in Russia. This was reported on October 19 by the press service of Primteploenergo.

The enterprise, located in Primorsky Krai, is being closed “due to losses and accumulated debts.” The release noted that the mine “has no markets for its products,” while the accumulated debt has reached 400 million rubles, including 150 million rubles. – The debt to KGUP Primteploenergo. Lermontovskiy GOK needs investments of 250 million rubles to buy reagents for concentrate production, to expand the production base and to carry out geological exploration, the company added. But this amount is equal to “half of the annual repair program in heat and water supply in 32 municipalities of Primorye,” stresses Primteploenergo.
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The Lermontovskiy GOK is developing the Lermontovskoye tungsten deposit in Primorsky Krai (reserves as of January 1, 2021 – 2,000 tons according to categories A+B+C₁). The company is the city-forming enterprise for Svetlogorie settlement. In 2020, mining operations at the deposit were stopped, and the mine was processing materials from the waste dumps of substandard ores. In the same year, Primteploenergo tried to sell the enterprise at an auction for 220.8 million rubles. But the auction was not held due to lack of bids. Lermontovskoye GOK’s revenues for 2021 amounted to 121.4 million rubles according to RAS, net loss – 157.9 million rubles.

“Primteploenergo” notes in the release that the decision on the need for further production of tungsten ores at the deposit “will be made by the Ministry of Industry and Trade of Primorsky Krai, taking into account the emerging market conditions.” “Vedomosti” sent inquiries to the regional ministry and the Russian Ministry of Industry and Trade.

According to the Ministry, only six companies are currently mining tungsten-bearing ores and technogenic material to produce tungsten concentrates in Russia. Tungsten is extracted from the subsoil in the Primorsky, Transbaikal and Khabarovsk territories and from man-made formations in Buryatia and the Trans-Baikal Territory.

The companies Primorsky GOK and Novoorlovsky GOK develop the Vostok 2 tungsten ore deposit in the Primorsky Territory and the Spokoyninskoye deposit in the Trans-Baikal Territory. The Zakamensk enterprise processes material from the Barun-Naryn technogenic deposit and the Inkurskoye deposit in Buryatia. Minor amounts of tungsten are mined and processed into concentrate by Primorvolfram. The Pravourmyiskoye company, which is developing the Pravourmyiskoye tin ore deposit in Khabarovsk Krai, carries out by-product production of tungsten concentrate.

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