Tigers Realm Coal has acquired the Beringovsky Port and Coal Terminal 35km to the north east of the Amaam North deposit and the proposed Project F mine in Chukotka province of far eastern Russia.
The port is presently fully operational and under the terms of the sales agreement, the port will continue to annually ship up to 70,000 tonnes of coal for the nearby Nagornaya mine and volumes of general cargo.
Beringovsky Port has historically handled more than 700,000 tonnes of coal annually from the Nagornaya mine and the port will be progressively refurbished and expanded over time to at least 1 million tonnes annual capacity.
Highlights of the port acquisition include:
- Exclusive ownership and management rights over the port;
- An acquisition cost of US$5.1 million, funded from cash reserves;
- The port is fully operational and equipped with infrastructure, barges, warehouses and office buildings.
Secure, low cost access to transport infrastructure is critical to the success of bulk commodity projects globally. Acquiring sole ownership and control of the Beringovsky port delivers Tigers Realm this critical piece of the mine to end user infrastructure chain.
The company views this acquisition as a critical milestone in the development of Project F. Chief executive officer Craig Parry says: “We are very pleased with the acquisition of Beringovsky Port at a very competitive price. We now own and control a port that, once refurbished, will have the ability to commence shipping Project F coking coal and has the optionality for expansion to at least 1 million tonnes.
“The acquisition lays the foundation of the infrastructure component of the Amaam projects, which includes the development of the larger, deep water Arinay port to the south of Beringovsky, 25km from the planned large tonnage Amaam coking coal mine. The sale of the port by the Government of Chukotka demonstrates the ongoing strong support for our projects.”
Tigers Realm owns 80% of the Amaam Coking Coal Project, which consists of two tenements - Amaam and Amaam North.
As reported in the 2013 pre-feasibility study, the Project F (Fandyushkinskoye) operation is planned to commence exporting coal in 2016, at an annual rate of about 500,000 tonnes with ramp up over time to about 1 million tonnes. Product coal will be transported by road from the mine site to product coal stockpiles at the Port of Beringovsky.
The Port of Beringovsky is on the northern shore of Ugolnaya Bay in the south of the Gulf of Anadyr. The bay is formed in a crescent shape between the Barykovo headlands to the north and Nizmenny headlands to the south. It provides direct shipping access to the Bering Sea and Pacific Ocean, and has been operating since the 1960s and supported coal exports from the Bering Coal district to Japan in the 1980s and 1990s.
The port is a trans-shipment facility loading barges that take the coal to larger ocean-going vessels anchored in deeper water about two nautical miles from shore, which is a short trans-shipping distance compared to similar operations in Indonesia and Columbia. Facilities at the port include a sea wall, loading berths, coal storage and loading facilities, maintenance facilities, office and warehouse buildings and equipment.
During 2015 and 2016 Tigers Realm intends to undertake a general refurbishment of the port, which will include the purchase of new barges, construction of stockpile yards and some small-scale channel dredging. www.tigersrealmcoal.com