En+ Group and South Korean investors to develop Chinea Deposit

The JV is planned to be registered in Russia. Strikeforce Mining and Resources (SMR) (part of En+ Group), the largest FeMo producer in Russia, will be the founding shareholder of the JV. The shares in the JV will be divided as follows: SMR, 50%+1, the consortium of South Korean investors, 50%-1. SMR will contribute its 58.9% stake in Zabaikalstalinvest CJSC (holder of the Chineiskoye license; exploration is underway). The South Korean consortium will invest at least $1bn into development, including construction of mining complex and creating an appropriate infrastructure. The final investment amount will depend on the feasibility analysis results.
The current plan for the JV is to produce mainly iron ore concentrate. As a potential next step the parties will consider construction of process and metallurgical plant.

"The development of the Chinea deposit is a complex project meant for decades. When successfully implemented, it will drive a long-term social and economic development of the Zabaikalsky region. The project is part of the SMR's diversification strategy aimed at bringing the company to a radically new level. We welcome large foreign investors represented by a consortium of leading South Korean industrial players", - said En+ Group's Managing Director and the SMR Board Chairman Anton Chertkov.

President of Kores Kim Shin Jong commented: "Recent years have seen a rapid development of the relationship between South Korea and Russia. With this JV we are making an important step towards a stronger partnership - economic partnership, in particular - between our countries. This project to develop one of the world's largest mineral deposits is important for us, and there's no doubt that jointly we'll be able to have it implemented at maximum efficiency - financially, technologically and environmentally".

The Chinea deposit is located in the Zabaikalsky region and is one of the world's largest iron/polymetal deposits in terms of both reserves (titanium magnetite iron ore - 1 bln tons) and resources (~30 bln tons).