Hong Kong-listed Zijin Mining Corp. has signed a memorandum of understanding with the government of the Republic of Tuva to develop the Kyzyl-Tashtygskoe lead and zinc mine, according to an announcement made by Tuva's head Sholban Kara-ool after a visit to China. Tuva's official delegation to China consisited of the Prime-Miiniste, Chairman of the Representative Chamber of the Great Khural Khonuk-ool Mongush and head of the exterior links agency Yelena Kara-sal. Zijing company acqainted guests from Tuva with an enrichment plant in Shangan similar to the one which is to be put into exploitation by January, 2008. The one in Todzha will produce up to 1 mln tonns of the copper concentrate.The Chinese corpoation will invest $ 206 bln all in all.
At the tender conducted early April, 2005, Agency of Mineral Resources the Novosibirsk-based company with Chinese capital 'Lunsin' Ltd. won by bidding RUR742.5 million for the right to develop Kyzyl-Tashtyg complex ore deposit.
In accordance with the terms offered by the applicant the company is to deposit RUR270 million (100% of the start one-off payment). The auction step was RUR13.5 million. Financial dispute for the Tuva deposit was between Director of Perspektiva Ltd. Mikhail Malyarenko and Director General of Lunsin Ltd. Lin Shude.
Kyzyl-Tashtyg complex ore deposit is situated 70 km to the south of the Todzha district of Tuva. Chinese representatives, during their visit to Tuva in August this year, confirmed their descision to explore a deposit rich in zinc, lead, copper etc.
The Todzha people are preoccupied with a possibly large influx of Chinese labour force.
