China’s Nonferrous Metal Industry’s Foreign Engineering and Construction Co Ltd (NFC) has signed a framework agreement with Russia’s Metally Vostochnoi Sibiri Corporation (MBC) to buy 50% in a project to develop the Ozernoye polymetallic deposit in the republic of Buryatia, Metropol, which controls MBC, said in a statement Saturday.

The agreement envisages the participation of the Chinese partner in the development of the deposit and construction of a mining and processing plant. The companies are expected to sign an engineering, procurement, construction and project management contract (EPCM). In addition, NFC is expected to organize project financing.

Total investments in the development of the deposit are estimated at over U.S. $1 billion.

MBC said that the company had already invested about $200 million of its own funds in the development of the deposit, including the technical report for construction of the mining and processing plant with an annual capacity of 8 million tonnes of ore.

Under the report, the plant will produce about 130,000 tonnes of zinc, 435,000 tonnes of zinc concentrate, 45,000 tonnes of pot lead, and 120 tonnes of silver.

Ozernoye is one of the world’s largest deposits in terms of lead and zinc reserves. It has over 157 million tonnes of ore reserves with a zinc content of 5.2%, a lead content of 1%, and about 25 tonnes of gold.

NFC mainly focuses on project contracting and development of base metal mineral resources.

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