Petropavlovsk PLC announced that its subsidiary, JSC Pokrovskiy Rudnik, has signed an agreement with Outotec OY for the delivery of key autoclave equipment for the future POX plant including four 60 cubic meter pressure leaching autoclaves. In addition, the Group has signed a non binding 5 year strategic cooperation agreement with Outotec to provide engineering consulting services in Russia, CIS and other countries.

Outotec is a leading global provider of process solutions, technologies and services for the mining and metallurgical industries. Outotec's strong market position and technology leadership are based on knowledge and experience derived from the operations of two major mining and metals companies; Outokumpu Group as well as the know how of Lurgi Metallurgie GmbH.

The contract follows the Group’s development plan to install a POX plant at the Pokrovskiy site to process flotation concentrate from the Malomir and Pioneer mines. The project design was developed by Outotec based on extensive metallurgical studies carried out by the Group’s research and development centers, Irgiredmet and Gidrometallurgiya and also at the Group’s metallurgical test plant.

The total annual POX plant capacity is estimated at c.600,000 tonnes of concentrate and the contract price is c. EUR 30 million. A contract for the supply of flotation equipment from Outotec is also expected to be signed in the near future.

Mr Peter Hambro chairman of Petropavlovsk PLC said that “I am delighted to report that our plans to create a POX processing hub at Pokrovskiy are progressing well. I believe that Petropavlovsk with our own expert research centers and PHM Engineering, working together with Outotec will be successful in establishing a world class POX processing hub, thus giving the Group a strong competitive advantage in a new and very prospective field.”

Mr Pertti Korhonen CEO of Outotec said that "We hope to establish a long term strategic partnership with the Petropavlovsk Group and its specialists. We believe that together with the strong scientific and engineering base developed by Petropavlovsk and by using its unique laboratory and test plant’s facilities we CFD-10280910-v1 will be able to offer sustainable technology solutions for efficient recovery of gold which will open up new prospects for the development of other gold projects in Russia and elsewhere."