JSC Atomenergoprom Annual Report

PERFORMANCE OF DIVISIONS JSC ATOMENERGOPROM / ANNUAL REPORT / 60 The construction of stage one start-up facilities for the development of the Eastern ore body of the Khokhlovskoye deposit was completed; the 'digital' uranium mining technology (Smart ISL Mine) was rolled out across the entire ore body. JSC Khiagda: - The construction of stage one mining units was completed at the Kolichkanskoye deposit; The development of the Dybrynskoye deposit was started; the construction of phase one infrastructure facilities was completed; The construction of field facilities was completed at the Vershinnoye deposit. JSC RUSBURMASH: - - - The enterprise continued to enhance construction capabilities at the construction sites of JSC Dalur and JSC Khiagda; As part of the fulfilment an industry-wide RPS order, the amount of time required to prepare for the mining of ore bodies at uranium deposits was reduced three-fold; The fleet of drilling rigs for the construction of process wells in ISL enterprises was expanded, including as part of import substitution. JSC VNIPIPT: - The enterprise received the status of the 2022 BIM Leader; A positive opinion was obtained from FAI Glavgosexpertiza of Russia for the Pavlovskoye project, which makes it possible to begin the expansion of Russia's footprint in the Arctic. Contribution to the technological sovereignty of the Russian Federation The Mining Division is the successor to the world's largest network of raw materials enterprises in the nuclear industry created in the Soviet Union. During its recent history, ARMZ has not only retained the status of a world-class uranium mining enterprise, but has also laid the foundation for the development of a new high-technology industry in Rus- sia, namely the production of rare and rare-earth metals. The current focus of ARMZ on the production of scandium, titanium and zirconium is only the first step in a long journey towards ensuring the self-sufficiency of the Russian Federa- tion in raw materials and technologies. JSC Atomredmetzo- loto is aware of the importance and complexity of the tasks facing it and is actively working to improve the quality of its own resource base and increase the efficiency of production processes. The development of production of rare and rare- earth metals (hereinafter referred to as RMs and REMS) is of critical importance for meeting the needs of high-technology industries in the Russian Federation. The key priority for the development of the industry is to replace imports, develop technologies and establish integrated production operations based on its own mineral resource base. To achieve this, a Road Map for the Development of the Technology for New Materials and Substances High-Technology Area has been drafted, which includes a separate product area, Rare and Rare- Earth Metals. In accordance with the Road Map, it is intended that the share of imported products in total consumption in the Russian Federation will be reduced to zero by 2030. In order to achieve the goals of developing the RM and REM product area, supplying resources for the production of flagship products and addressing gaps in the process chains for the manufacture of products based on titanium, zirconium, REM oxides, lithium, niobium, tantalum and scandium, the Division is implementing the following projects: Lithium in the Russian Federation: a project to produce lithium carbonate/hydroxide at the Kolmozerskoye lithium deposit in the Murmansk Region; Phosphogypsum project: the establishment of a facility for the production of REMs and gypsum products from phosphogypsum, including individual REM oxides; Titanium project: the establishment of a mining and processing plant for the processing of ilmenite- zircon sands from the Tuganskoye deposit in the Tomsk Region to produce titanium concentrates (ilmenite, rutile); Scandium project: the establishment of a facility for the production of scandium oxide and aluminium-scandium alloy as by-products at the industrial site of JSC Dalur. Plans for 2023 The main objective of the Division in 2023 is to ensure that the uranium production programme is 100% fulfilled. The Division will continue to expand the use of in-situ leaching, which is the most effective mining technique. Plans include completing the construction of pilot site facilities at the Dobrovolnoye deposit. The Division will continue the construction of facilities at the Khokhlovskoye deposit, begin to design facilities for the Verkhne-Uksyanskoye deposit (JSC Dalur) and start uranium mining at the Dybrynskoye deposit (JSC Khiagda). The Division plans to continue construction at Mine No. 6 of PJSC PIMCU; this includes reaching the design capacity and meeting the quality target for the pumping out of mine water, and starting the construction of facilities at site 20V. As the Krasnokamensk CHPP has become a subsidiary of the Mining Division, ensuring the reliable and safe operation of energy facilities will become one of the top priorities of PJSC PIMCU. The preparation of a pre-feasibility study for the development of the Elkon Mining and Processing Plant is scheduled for 2023. As part of new business development, in 2023, the Division plans to move to the industrial stage of development of the Severnoye deposit, which will result in a significant increase in gold production. Reserves are expected to be confirmed and entered in the register by the State Reserves Commission. An important milestone in the development of the rare and rare-earth metals business in 2023 will be participation in the auction for mineral rights over the Kolmozerskoye deposit in the Murmansk Region. In 2022, the deposit formed part of the unallocated fund of the Ministry of Natural Resources and Environment of the Russian Federation. The development of this deposit will provide the Russian Federation with its own source of lithium feedstock. While there are three operating enterprises processing lithium feedstock, Russia does not have its own operating lithium mines and imports all lithium feedstock. An important step towards developing an in-house technological solution for producing individual REM oxides will be the validation of design performance of a pilot REM separation plant and of the quality of the finished product as part of the Phosphogypsum project in 2023. The next stage will involve the development of a semi- industrial plant to ramp up REM production. Production ramp-up to target capacity in the Tugansk Ore Mining and Processing Enterprise in 2023 will provide Russian producers with a domestic source of titanium and zirconium and will make it possible to validate design performance. The implementation of new projects in the mining industry and related sectors will drive the growth of the Division's business and enhance its long-term social and financial sustainability. PERFORMANCE OF DIVISIONS JSC ATOMENERGOPROM / ANNUAL REPORT / 61