OREANDA-NEWS. MMC Norilsk Nickel and Federal Railroad Transport Agency (Roszheldor) entered into the investment agreement on construction of Naryn-Lugokan railroad in Chita region.

According to the press service of “Norilsk Nickel”, the new 375 kilometers long railroad will provide access to Trans-Siberian trunk from major mineral deposits located in the Baikal region including: Bystrinskoye, Kultuminskoye, Lugokanskoye (copper-sulfide deposits), Solonechenskoye (antimony-gold deposit) and Bugdainskoye (gold-molybdenum-porphyrite deposit). The parties signed the agreement at the 11th International Economic Forum in Saint Petersburg. 

The railroad construction project is administered on the terms of partnership between the state and private investor. Pursuant to Decree of the Russian Government No. 1708 dated November 30, 2006, in 2007-2011 the Russian Investment Fund is to commit 69% of the total cost of construction with the remaining portion of costs to be covered at the expense of MMC Norilsk Nickel.

The total amount of estimated railroad construction cost is RUB 51.5 billion (estimated as at January 1, 2006).
 
The mineral deposits of the Chita project will provide basis for Norilsk Nickel's plans that involve commissioning of mining and concentration capacities with total output in excess of 35 million tons of ore per year in 2012 - 2015. Lifetimes of deposits, most of which are suitable for open-pit mining, will exceed 30 years.
 
Calculated cost estimates for construction of mining and concentration facilities include the costs associated with installation of water and air treatment units. Design and construction of all facilities will be based on standards and provisions of the Russian environmental legislation.