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The study confirms capacity of production of 6.5 million tons per annum of coking coal, with 5Mtpa to come from open pit and 1.5Mtpa from underground over the 20-year life-of-mine.
A resources estimate at Amaam previously confirmed total resources of 412Mt, 62.5Mt indicated and 349Mt inferred.
The study also confirms strong project economics, with a net present value of $US885 million and an internal rate of return of 19%.
Capital cost to production is estimated at $1.34 billion, including more than $600 million in mine fleet and infrastructure costs which the company hopes to part or fully fund through independent contractors and infrastructure partners.
Total free-on-board costs, including mining, washing, administration, rail, port and Russian state royalties, are estimated to average $98.01 per tonne of saleable product over life of mine.
The project’s base case, a combined total of both the project’s main open pit, underground mine and preparation plant, is expected to produce 107Mt of product coal, comprising 91Mt of premium coking coal and 16Mt of high-volatile coking coal.
The Amaam open pit operation will be mined using the “haulback method” and is expected to commence production in 2017.
The underground operations will assume both longwall and room and pillar mining.
After a two-year pre-production period, the underground operation is expected to commence production in 2022.
Tigers Realm plans to develop an all-weather road and rail line to a coal terminal on the north shore of Arinay Lagoon, 25km from Amaam, with loading facilities for the shipment of coal to export markets.
Tigers Realm is focused on moving as quickly as possible into production at Amaam North and moving the Amaam project through a bankable feasibility study stage.
The company said it was continually looking for work programs to add value to the project, including increasing resources through further drilling, extending the underground mine life beyond 20-year life-of-mine and improving coking coal yields by further processing of coarse middlings.
Tigers Realm recently received its mining and exploration license from Russian regulators that allows it to increase its ownership of Amaam to 60%.
Once the BFS is completed, it can increase its ownership to 80%.
