FEDF to Support Construction of a High-Voltage Power Line for the Nezhdaninskoye Field in Yakutia

In July, the Republic of Sakha (Yakutia) will launch the construction of a new 254km-long overhead power line and substation. The power line will be installed from a substation in the Khandyga settlement, 415km east of Yakutsk, to the industrial site of the Nezhdaninskoye gold ore field developed by Polymetal gold mining company with the Far East Development Fund’s support. The concentrate from the field will be supplied to the Amur Hydrometallurgical Plant for further processing (in a similar vein, this project is supported by FEDF).

“Connection to power lines improves the economic position of the Nezhdaninskoye field and ensures a major reduction of the facility’s environmental footprint” said Vitaly Nesis, Chief Executive Officer of Polymetal.

In particular, connection of the Nezhdaninskoye field to power lines will reduce total electricity costs as compared to diesel generation from RUB 16 to RUB 10 per kilowatt-hour. This will reduce the monetary costs of the Nezhdaninskoye field by about US$40 per ounce. Besides, the project will decrease the environmental footprint by ensuring a 75% reduction of CO2 emissions at the Nezhdaninskoye field (from 64,000 tons to 16,000 tons) and reducing the risks of man-made accidents due to transportation and storage of diesel fuel in large amounts.

The construction project is scheduled to be completed in 2Q 2022.