FSUE Atomflot and GDK Baimskaya LLC Sign Preliminary Agreement on Electricity Supply

Rosatom-subsidiary FSUE Atomflot and Kaz Minerals-controlled GDK Baimskaya LLC signed a preliminary agreement on the supply of electricity for the operation of the Baimsky mining and processing plant – the largest copper and gold project (in terms of estimated reserves) in the post-Soviet space. The agreement was signed in Vladivostok in the framework of the Eastern Economic Forum, as part of a comprehensive investment plan for the development of the Baimskaya ore zone.

FSUE Atomflot will supply 4 optimised floating power units (hereinafter referred to as OFPUs) each with an installed capacity of at least 106 MW. The first two power units will be commissioned in the water area of Cape Nagleynyn by the start of 2027, the third by the start of 2028, and the fourth by the start of 2031. Total investment in the energy supply project will amount to over 150 billion rubles. One of the most important conditions of the preliminary agreement will be the legislative (if necessary) and/or legal and regulatory resolution of the “take or pay” principle when supplying electricity to the Russian Federation.

As part of the agreement, the parties established the price of electricity as 6 roubles per kWh in 2020 prices and consumption volumes; the prices take inflation into account.

The agreement was signed by FSUE Atomflot Director General Mustafa Kashka and Chairman of the Board of Directors of GDK Baimskaya LLC Oleg Novachuk.

FSUE Atomflot Director General Mustafa Kashka said:

“The agreement with GDK Baimskaya LLC is a landmark not only for the development of Atomflot, but also for the global market of mobile low-capacity nuclear power plants. The deal for this volume of electricity was concluded on commercial terms in the framework of a project for the mining of minerals in a remote Russian region. Atomflot, with its extensive experience operating Russia’s nuclear icebreaker fleet and low-power reactors, is a natural partner in such projects. We are grateful to GDK Baimskaya LLC for supporting our proposal.”

Oleg Novachuk, Chairman of the Board of Directors of GDK Baimskaya LLC, said:

“Thanks to our agreement with Atomflot, it will be possible to develop the large Baimskoye field – a field situated in a remote area where there is no appropriate infrastructure – in an economically efficient manner. We are confident that, in partnership with Atomflot, such a large project will be implemented efficiently, which ultimately will have a beneficial effect on the socio-economic development of the entire region.”