Pursuant to decree by Sevzapnedra No. 754 dated 18.11.2019 KLG license 02518 TE was issued in the duly established order to JSC KGDI for exploration and production of K-Mg salts at Severo-Krasnoborsky mine field in Kaliningrad Region for the term of 25 years.
Term of this license expires on November 18, 2044.
This mineral property has the status of a mining territory.
Licensed area comprises 7.2 km2 with limitations of depth of the bottom elevation of reserves calculation.
In-place reserves of the object were approved by TCNR protocol in 2018 (No. 18-18/КО 26.06.2018) for categories С1+С2 in the amount of 605.7 million tons (64.36 for К2О and 29.11 MgO).
In order to improve the efficiency of geological prospecting work and to minimize investment risks (primarily as part of completion of exploration and appraisal works at Vostochno-Krasnoborsky area) 3D models have been developed and deployed for both Severo-Krasnoborsky and Vostochno-Krasnoborsky areas, which served as additional proof of correct estimation for the number, locations, and depths of planned wells at Severo-Krasnoborsky license block.
The analysis of these 3D models of both areas generally concluded that:
- Everything is correct from strategic standpoint (polyhalite swells, unit and local content in vertical sense)
- Strike direction of swells of the main production polyhalite swell, Zadadny, at Severo-Krasnoborsky area would change from 10° by 35-40°;
- Continuity of stretching of main production- and polyhalite swells (Zadadny – at Severo-Krasnoborsky and Vostochno-Krasnoborsky area) turned out to be lower than expected (swell of Severo-Krasnoborsky area with the total length of 6000 meters (line of wells С5-СК3-С3-2VP-СК2-L9), which based on the results of geologic prospecting works was divided into 2 ore deposits (Severnaya at intersection with well SKZ and Yuzhnaya with a line of wells 3VK-С4А-2VP-3СК) with the length of 1700 meters and 4200 meters).
Due to this the main increase in the reserves at Vostochno-Krasnoborsky can be currently forecasted in its central and northern areas.
- Intensity of delineation in terms of capacity and transverse to the strike of production anhydrite-polyhalite swells in relation to the initial understanding has also changed, and it is higher than it was expected.
- Continuity of polyhalite sectional emplacement also turned out to be less persistent.
The aforementioned circumstances resulted in the conclusion of expediency of mining of the new version of the project of exploration and appraisal stage of geological prospecting works at Vostochno-Krasnoborsky area, and optimization of the number of project entries, their locations, as well as adjustment of certain types and scope of works.
Pursuant to decree by Sevzapnedra No. 06.08.2018 the fact of discovery of Severo-Krasnoborsky potassium and magnesium salts mine field in Kaliningrad Region by JSC KGDI, of which the relevant pioneering certificate was issued on 06.08.2018 No. KLG 18НЕМ0001.
Pursuant to protocol dated June 26, 2018 No. 14-18/КО at the meeting of Territorial Committee of the State Expert Council on Mineral Reserves of the Department for North-Western Federal District (section of solid commercial minerals and hydrocarbons, underground facilities, and other subsoil minerals) provisional exploratory standards were approved for calculation of the reserves of potassium and magnesium salts at Severo-Krasnoborsky mineral property.
In Q2 2018, a geological report on the results of the works Prospecting and Evaluation Works for Potassium and Magnesium Salts at Severo-Krasnoborsky Mineral Property and Feasibility Study of provisional exploratory standards and calculation of reserves of potassium and magnesium salts at Severo-Krasnoborsky mineral property was finalized.
The materials prepared passed the state expert committee established by order of Saint Petersburg branch of the state-owned enterprise GKZ (State Commission for Reserves) on 14.05.2018 No. SP-0-9/20-org and addendum dated 30.05.2018 No. SP-01-9/28-org.
A tripartite meeting took place In city of Sondershausen (Germany) at the initiative of А K + S Group Сompany. The meeting was attended by senior managers and experts of А K + S Group Сompany (Germany), K-UTEC AG Salt Technologies (Germany), and JSC Integrated Mining Investments (JSC KGDI) (Russia)
The parties to the meeting confirmed preliminary interest in joint development of the project and mining of Severo-Krasnoborsky and Vostochno-Krasnoborsky polyhalite ore mine fields, and development of ore production based on their resource portfolio in order to produce the end product – top grade sulfate-potassium fertilizers.
K-UTEC AG Salt Technologies confirmed that it had proper expertise in the development of technology, geology, economics, environmental aspects for such assets and that it had the corresponding industrial resources and facilities, and that the company tended to positively evaluate the geological, processing, and economic factors of Krasnoborsky polyhalite ore mine field.
А K + S Group Company announced that it was currently looking for an asset for SOP production and it also noted that once the specialists of К+S together with the specialists of K-UTEC AG Salt Technologies study materials submitted by JSC KGDI pertaining to geologic, processing, economic aspects of the project, and after a field visit of the mine field in Kaliningrad Region in order to review the wells and study the core materials, the company would conclude on the quality of this asset and submit its assessment and calculations for further development of FS stage of this project.
JSC KGDI completed development and submitted its Feasibility Study of provisional exploratory standards to the State Expert Appraisal for calculation of the reserves of potassium and magnesium salts at Severo-Krasnoborsky mineral property and its Report on its exploratory work "Prospecting and Evaluation Works Pertaining to Potassium and Magnesium Salts at Severo-Krasnoborsky mineral property.
Our company, JSC Integrated Mining Investments, which is engaged in the project of setting up production of raw minerals and their processing into potassium sulfate (SOP- K2SO4) and magnesium sulfate (MgSO4) in Kaliningrad Region took part in FSHOW-2018 trade show, booth No. 4, booth N4M01 which took place at Shanghai Expo Center.
Based on the data from five wells JSC KGDI continued studies, interpretation, and development of potassium sulfate mining and treatment. The company also conducted preliminary feasibility study. It is planned to enter the reserves in categories С1, С2 in the amount of 90-100 million tons of К2О content in the national register of reserves.
In the city of Sondershausen (Germany) the management of JSC KGDI held a meeting with the management of Easter Europe and Central Asia office of А K + S Group Company (Germany).
А K + S Group Company intends to set up production of top grade sulfate-potassium fertilizers (SOP) and in this light the company expressed its interest in the project of Severo-Krasnoborsky polyhalite ore mine field in Kaliningrad Region. For comprehensive studies of the project the corresponding materials were submitted to the interested party.
In the city of Sondershausen (Germany) a tripartite working session took place on the project of exploration and mining of Severo-Krasnoborsky and Vostochno-Krasnoborsky areas of polyhalite ore mine field and the development of ore production based on these areas, as well as production of sulfate-potassium fertilizers (SOP).
The meeting was attended by the management and senior experts in technology, geomechanics and production of K-UTEC AG Salt Technologies (Germany), project head at Sistema JSF and senior management of JSC KGDI.
At the meeting the parties resolved on expediency and feasibility of the project. K-UTEC AG Salt Technologies proposed to extend the product line, and in addition to the core product of К2SO4 (SOP) the company proposed to produce MgSO4 (epsomite) and gypsum. Notably, the marketable volume of gypsum may reach 600 thousand tons per year, and production waste can be used as backfilling of openings and drivages.
Sistema JSF took the working meeting materials into account and expressed interest in joining the project as financial partner.
In the city of Perm a meeting took place between PJSC Uralkali and JSC KGDI.
PJSC Uralkali was represented in the meeting by its General Director, Technical Director, Chief Geologist, and other senior experts, while JSC KGDI was represented by Chairman of the Board of Directors of Rostok Group, its General Director and Chief Geologist.
PJSC Uralkali noted the project's significance and expressed tentative interest in developing the project. The company recommended to continue prospecting and exploration works until completion of exploration and appraisal stages, and it also emphasized the importance of developing the industrial technology of polyhalite ore treatment.
A work meeting took place in Moscow of the management of JSC KGDI and the management of JSC MKhK EvroKhim represented by its General Director and Assistant General Director.
JSC MKhK EvroKhim demonstrated interest in the mining of polyhalite ore mine field, due to the opportunity to produce top grade sulfate-potassium fertilizers. On completion of the meeting a work group was formed. It is chaired by Chief Geologist of JSC MKhK EvroKhim. The work group studies materials relating with Severo-Krasnoborsky and Vostochno-Krasnoborsky areas.
Our experts took part in VII Annual International Conference "Mineral Fertilizer Market and Fertilizer Science" 2010 in the city of Odessa, Ukraine.
October 30 – 31, 2010
Our delegation took part in Russia-Vietnam business forum as part of the meeting of ASEAN countries in the city of Hanoi, Vietnam. The Russian delegation was chaired by the Russian President D.A. Medvedev. On October 18, 2010 at the invitation of the RF Chamber of Commerce and Industry CJSC KGDI joined the Russian-Vietnamese Business Council.