Growth of Kun-Manie Mine Raises Profitable Possibilities for Amur Minerals

The Great Depression of the 1930s was one of the longest and most abiding economic suffering that the world has experienced in the 20th century. According to the Wall Street Journal, gross domestic product (GDP) may have fallen by as much as 15% from 1929 to 1932. It all started when the stock market in the United States crashed in October 1929, with devastating consequences. Everywhere in the world, developed country or not, felt the effects of an unprecedented economic collapse. Industries took a hard hit, from construction to farming to mining.

Nevertheless, in Russia, the Soviet Union has had some form of insulation from fiscal suffering as it is, at the time, the only communist state in the world. The country wasn’t open to international trade, hence its economy wasn’t that affected. However, since societies worldwide were changing from a rural lifestyle to an industrial one, Russia also desired for a more modernized standard of living. Thus began the collectivization of lands, consolidating them into parcels that will undergo modern agriculture practices. In theory it was ideal, but in actuality, it met fierce resistance among farmers. The government responded by cutting off food supplies to anyone that opposes the policy, which eventually led to famine that was said to have claimed millions of lives.

All this to say – industrial businesses and mining companies in Russia today have come a long way since the 1930s. Currently, the country is again experiencing troubles reminiscent of the old days. Now the low oil prices as well as the ongoing conflict with Ukraine has devalued the ruble a lot, and trade and industry are struggling to keep moving forward despite the tough challenges they are facing.

Amur Minerals Corporation (LSE:AMC.L), in particular, is a beacon of light amidst falling share prices in other markets, as this mining company has further progressed its Kun-Manie project ever since its discovery. As of August of 2014, its mining reserve with the London Stock Exchange has increased by almost 25%, making it among the top 20 nickel sulphide projects in history. This increase amounts to 39.2 million ore tonnes, said to contain 219,000 tonnes of nickel (with an average mined grade of 0.56%) and 58,100 tonnes of copper (0.15%), respectively. Other elements included are platinum and palladium, which are both over 5.0 tonnes.

Moreover, 80% of the measured resources in Kun-Manie are mineable. The possibilities for profit are huge for Amur Minerals. Previous EBITDA early estimates put the range from $726 million, in which nickel can be priced at $18,740 per tonne or $8.50 per pound.

Located in Amur Oblast, in the far eastern part of Russia, the company is currently waiting for Prime Minister Dmitry Medvedev’s approval of its exploration and production license.