This text is translated into Russian by google automatic human level neural machine.
EastRussia is not responsible for any mistakes in the translated text. Sorry for the inconvinience.
Please refer to the text in Russian as a source.

The Chukchi Extremum

"We now have our own, practical example of what can be achieved in the Far East"

The Chukchi Extremum

In Chukotka, one of the best in the Far East, the increase in industrial production and tax revenues of the budget. And even a positive balance of migration. The region will present many more surprises.

At a meeting in Yakutsk in early September, reporting to Vladimir Putin on the successes of the Far Eastern regions, the head of the Ministry for the Development of the Russian Far East, Alexander Galushka, praised the leadership of the Chukotka Autonomous Okrug. As the minister noted, in 2014 in Chukotka, the implementation of two investment projects ensured the growth of industrial production by 182,8%. We are talking about the launch of a mining and processing plant (GOK) at the Mayskoye deposit, as well as a GOK at the Dvoinoy deposit. The first project belongs to Polymetal, the second - to the Canadian Kinross Gold.

"The example of Chukotka, which is far from the most favorable region by natural and climatic conditions, is not that in the Far East, but in general in the country, shows that all this can be done. Such a development model is realizable. We need to individually and accurately take on each investment project, disassemble it in detail, understand all its problems and bring it from the beginning to the end, "A.Galushka said in Yakutsk.

As noted by the regional authorities, from 2008 year after the launch of the large ore deposit "Kupol", the average annual gold production in the district reached 23 t, which is five times higher than in the previous years. In 2013, two new gold ore facilities were commissioned: a concentrator at the Mayskoye field (ZK Maiskoye LLC) and a mine at the Dvoynoye deposit (Severnoye Zoloto). Thus, in 2014 year in Chukotka, the extraction of precious metal is expected to increase to 30 tons.

Commenting on the results of this meeting in Khabarovsk, the minister added that the regional authorities have drawn these two important projects "from the beginning to the end": "

“We sorted out the problems in detail, provided a shoulder to the investor, worked with each project individually. This is not the Kaluga region next to Moscow, this is not Tatarstan or the Ulyanovsk region, which are often cited as examples. This is the Chukotka Autonomous Okrug, where the average temperature is from –4 to –14 per year. And we now have our own practical example of what can be achieved in the Far East, ”he said.

The minister also paid attention to the influx of labor into this awakening region:

"Despite the natural increase in the population of the Far East, the birth rate exceeds mortality, but there is still a migration outflow. So from the nine subjects of the Far East in Chukotka, we, on the contrary, have a migratory influx of people. For six months in the Chukotka Autonomous District came 305 people - and this is thanks to new jobs. "

Despite the fact that Chukotka is fighting for every investment project, despite the climatic difficulties and infrastructure constraints, Vladimir Putin and Governor Roman Kopin reported to Vladimir Putin.

"Yes, Chukotka has nuances - with transport accessibility, energy. These are large-scale issues, so you need to understand that they will not dare in one day. We are working steadily on this. We expect Minvostokrazvitiya and DOE will support our proposal to integrate the Chukotka and Magadan power systems that allow the use of relatively inexpensive energy Ust-Srednekanskaya HPP (installed capacity 570 MW, the first starting complex 168 MW put into 2013 year), and therefore - to lower tariffs Electricity for the population and investors. The project requires significant financial investments, but this is a long-term prospect, and it has good justifications. Concerning the transportation issue, we also have a number of decisions on which the region is working, "R.Kopin said at a meeting in Yakutsk. Also, the head of Chukotka said that two more large investment projects are being prepared for implementation in the district. This development Bering coal basin (it is an Australian company Tigers Realm Coal) and Baimskoy ore zone - (Millhouse Roman Abramovich project). Moreover, the second project - the most ambitious one - provides for the development of airport, port, road infrastructure, construction of GOK.

The Baim Ore Zone is located in the Bilibino district of the Chukotka Autonomous Okrug bordering the Magadan Region. The resource potential exceeds 27 million tons of copper and 2 thousand tons of gold. It can be attributed to the category of giant deposits of copper-porphyry origin. The project for the development of the Baim Ore Zone is included in the Strategy for Social and Economic Development of the Far East and the Baikal Region until the year 2025, approved by the decree of the Government of the Russian Federation. In addition to the governments of Kolyma and Chukotka, the project involves the participation of the Ministry of Industry and Trade of the Russian Federation and the Ministry of Energy of the Russian Federation, as well as private investors: Basic Metals LLC and GDK Baimskaya LLC (Roman Abramovich's structures).

Further realization of the extractive industry is impossible without a new energy infrastructure. Given the already existing projects, 2019-2025 year Chukotka will require from 150 to 250 MW of additional capacity. Of these, 83 MW is to cover those power plants that will be decommissioned in the near future. In Chaun-Bilibino centralized energy center (it is formed by the capacities of Chaunskaya CHPP and Bilibino NPP), private investors announced two major projects. This development of the field of Kekura (Highland Gold Mining) and Baimskaya Square (Millhouse). Polyus Gold's participation in the development of Burgahchan has not been confirmed yet. That is, the additional demand of industrial facilities will be from 110 to 260 MW. However, while these potential consumers are not tuned to withdraw energy from centralized networks - it stops the high tariff. There are still isolated projects to which the network infrastructure has not yet reached. This Mayskoye (Polymetal), and Double Dome (Kinross Gold), Maple (Highland Gold Mining), Karalveem (owner - Israeli businessman Lev Leviev). However, the technical connection of these consumers also does not make sense at the existing tariff load.

At a meeting in Vladivostok with Deputy Prime Minister Yuri Trutnev with the participation of the Primorsky Territory Governor Vladimir Miklushevsky, the head of the ChAO, Roman Kopin and the Director General of Rosatom State Nuclear Energy Corporation, Sergei Kiriyenko, the issue of the development of nuclear power in the Far East was raised. According to R. Kopin, the development of the Kekura deposit (licensed by Highland Gold Mining Roman Abramovich) in the Chukotka Autonomous District will allow the region to increase the utilization rate of the installed capacity of Bilibino NPP by 20% and reduce the electricity tariff from 13 rub. For kWh up to 8,2-9 rub. Today, nuclear energy in Chukotka is an extremely expensive resource. However, if we increase the load on Bilibino NPP, increase the utilization factor of the installed capacity from 40-50% to 60-70%, the tariff for the consumer will significantly decrease.

"The decision of the issue can be the development of the Kekura field. The required amount of electricity will increase the consumption in the power system by 83 million kWh, the load of BNPP will increase by 90 million kWh, that is, the output will increase from 170-200 million kWh to 260-300. This will entail a reduction in the tariff for electricity for consumers to an average of 8,6 rubles. For kWh, as well as a reduction in the amount of budget subsidies for the difference in tariffs by about 290-430 million rubles. A year with the necessary today 1 billion rubles, "- such calculations led R. Kopin. The maximum loading is necessary for the floating nuclear power plant in Pevek.

Again, the authorities of the region raise the issue of network infrastructure - after all, the construction of a new generation loses its meaning without the possibility of transferring energy and power. The key decision in the field of energy should be the unification of two isolated power systems - Chukotka and Magadan.

"For the Magadan Region, this is an opportunity to use excess capacity, and for Chukotka - to use the relatively cheap electric power of the Kolyma cascade of hydroelectric power stations," R. Kopin said.

The Governor of the Magadan Region, Vladimir Pechenyi, agrees with him. At a meeting with the chairman of the World Association of Nuclear Operators organizations (WANO) Jacques Regaldo (his delegation arrived in the Far East to visit Bilibino NPP) Governor noted that in the Magadan region now has excess generating capacity, so, after the close of Bilibino NPP The region is ready to supply electricity to the Chukotka Autonomous District. "Projects for laying a power transmission line from the Kolyma cascade stations already exist and are being considered along with other options for power supply in Chukotka," V. Pechenyi said. In early October, the authorities of Chukotka sent an investment agreement to Magadan colleagues, in which it is proposed to unite the energy systems of the two regions. Both governors say that they will attach maximum efforts to this project.

However, the optimism of regional leaders is not shared by all. The representative of the energy company, who wished to remain anonymous, notes that this project has been discussed in different versions since 1992 year and each time it was not enough budgetary funds. The interlocutor does not agree with the fact that network projects in Chukotka need to be realized right now, when "no one has money, the financing of the Far East is cut, and the economic returns of the declared construction projects are not obvious." A much greater economic effect will be provided by the unification of the power grids of the Magadan Region, Yakutia and the Unified Energy System of the East.

"There are more potential investors in Kolyma, Yakutia, and they are only waiting for that when energy comes. A successful PPP can develop with companies that already have started projects and considerable financial resources - for example, with "Rosneft", "Gazprom" and Polyus Gold », - said Energy. According to him, "the truth must be solved with the Bilibino NPP, which is completing its term, and the new station in Pevek will be very expensive and difficult to maintain, from this point of view we need a transmission line from Magadan."

"But as you know, the rescue of drowning people is done by the drowning people themselves, and these problems are likely to lie on Rosatom. From a technical and economic point of view, building a network in Chukotka is an ill-considered undertaking, "the industry representative said. In the Ministry of Energy and Rosatom, the initiative of the Chukotka authorities was not commented on.

September 22: current information on coronavirus in the Far East
Digest of regional events and latest statistics