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Pizhemskoye titanium deposit's development first stage planned for 2026

The RUSTITAN Group of Companies implements an investment project to build a vertically integrated mining and metallurgical complex to process titanium ores and silica sands at the Pizhemskoye deposit

SYKTYVKAR, February 19. /TASS/. The first stage of the project to develop the Pizhemskoye titanium deposit in the Komi Region, one of the largest titanium deposits in the world, is planned for 2026. Investments in the first stage are estimated at 52 billion rubles ($570 million), deputy chairman of the regional government, Anton Vinogradov, told reporters.

The RUSTITAN Group of Companies implements an investment project to build a vertically integrated mining and metallurgical complex to process titanium ores and silica sands at the Pizhemskoye deposit. The project is part of the Russian Federation's Strategy for Development of the Arctic Zone and of the Komi Region's plan to diversify the economy.

"Investments in the first stage are about 52 billion rubles, the stage is planned to be implemented in 2026. The first stage is the raw material module, the launch of the production of artificial rutile with a capacity of 130,000 tons per year, synthetic wollastonite - 150,000 tons per year, iron oxide - 80,000 tons per year, zirconium concentrate - 1,500 tons per year, silica sand - 1 million tons per year," the official told reporters.

The project's second stage is planned for 2026-2030, where investments will be more than 120 billion rubles ($1.3 billion). The project will require more than 5,000 jobs. The second stage would be a chemical module: synthetic wollastonite's production will be built up, the launch of production of quartz sand with a capacity of 1 million tons per year, and pigment titanium oxide - 140,000 tons per year, he continued. "We have made great progress in the implementation of this time-consuming project. The first stage's payback term is estimated at 6 years, revenue - 36 billion rubles ($395 million), of the second stage - 8 years and revenue of 84 billion rubles ($921 million)," he added.

Work on the project began in 2006. Right now it is at the investment stage. The formation of a pool of banks to participate in the project is underway. The locomotive bank is VEB.Russia, the pool features Sberbank and Gazprombank, the official noted.

About project

The Pizhemskoye field is the world's biggest deposit of titanium and quartz material. The plan is that at the first stage to 2026, the companies will organize a mining enterprise at the Pyzhemskoye field in the Ust-Tsilemsky District, as well as a mining and processing plant and a glass factory to enrich silica sands near Sosnogorsk.

In July, 2022, the Komi Region's Governor Vladimir Uiba said the RUSTITAN Group of Companies and the AEON Corporation jointly with the Komi Region and the Nenets Autonomous Region had started the implementation of a mega project to develop the world’s biggest Pizhemskoye deposit of titanium ores and silica sands, to build a railroad between Sosnogorsk and Indiga and to build the Indiga deep-water sea port. The project will involve about a half of Komi's municipalities.

As a result, in the Komi Region will appear a multidisciplinary production facility to make high-quality concentrates of porous rutile, zircon, iron oxide, needle-shaped wollastonite, calcined quartz sands, glass sands, titanium dioxide, as well as titanium powders. Many products are unique to Russia and are being imported. They are used in the aerospace, shipbuilding, automotive, oil and gas, paint and chemical industries.

The Pizhemskoye field's development and the Indiga port's construction with the Sosnogorsk-Indiga railway line have been parts of development strategies in the Komi and Nenets Autonomous Regions, of the Russian Federation's Strategy for Development of the Arctic Zone.