Another step taken for gold extraction

2017/12/02

An agreement for full (100 percent) financing of the project of building a factory for processing Shadan gold and copper has been signed between “Karand Sadr Jahan” Company and a consortium consisting of the two Chinese companies of “Citic” and “Xinhai” and the Iranian “MIM Team”.  Based on preliminary estimates, the value of the agreement is 48 million euros.

The Karand Sadr Jahan Company is one of the holding companies for the development of Sadr Jahan mines. The holding is the subsidiary of Kharazmi Investment Company (Public Stock). The Citic Investment Company is also a state-owned Chinese company which has been active in Iran over the past 25 years. The Xinhai Engineering Company holds its activities under the supervision of Citic. The Iranian MIM Team is also active in the area of construction.

The signing ceremony of the agreement was held on Thursday evening at the premises of Kharazmi Investment Company in the presence of CEOs of the above-mentioned companies.

This financing is in the form of EPCF or, in other words, includes basic engineering, detailed engineering, complete construction, construction of the building, installation of the machinery, operation of the production line, test and production and financing which would take place within 20 months according to the agreement.

The Citic Company, the 100 percent financier of the project, has announced readiness for the purchase of concentrated gold and copper. The senior managers of the mining holding of Kharazmi Investment have welcomed the proposal due to the plunge in exchange rate risk.

Initial estimates suggest that after the installation of the machinery and operation of the factory for processing gold and copper, in the first phase about one ton of gold bullion and 18 thousand tons of gold and copper concentrates will be extracted and about 150 job opportunities will be created.

The initial excavations of 7 thousand meters of South Shadan Mine, located in the vicinity of the city of Birjand, led to the issuance by the Ministry of Industry, Mine and Trade of the certificate of the discovery of 15.6 tons of pure gold. But with the increase in drilling to 15 thousand square meters in 1395 (2016-2017), new evidence and documents were obtained on the existence of at least two times more pure gold which would soon be forwarded to the Ministry of Industry, Mine and Trade for issuing new exploration certificate.