Investment Case

A Clear strategy for Growth

IRC is a vertically integrated
producer of industrial
commodities, notably...

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INFRASTRUCTURE

IRC benefits from a strategic location on the Sino-Russian Border, with excellent access using established rail and port infrastructure to China and the North East Asian. IRC has involvement with two infrastructure projects that will enhance its logistical advantages by widening its customer base and further shorten the distance and time to reach them.

Amur River Bridge

Amur River Bridge is a national project between China and Russia to build a railway bridge across the Amur River border between the two countries. The Amur River Bridge was hailed as one of the major projects between the two countries. These infrastructure projects including the Amur River Bridge are expected to bring closer economic cooperation which IRC may benefit from.

According to the public sources and media reports, the Chinese side of the bridge has been completed, while the Russian side of the construction has started during 2016.

The current distance from K&S operation to the Chinese border (Suifenhe) is approximately 1,000 kilometres. When the Amur River Bridge is completed, the distance and cost for K&S transport of products will be hugely reduced.

K&S mine is situated approximately 240 kilometres from the bridge site and IRC’s nearest customer within China is approximately 180 kilometres away from the bridge. The bridge could halve the transport costs of K&S and further confirming IRC as one of the lowest cost iron ore projects in the world.

Port

The Group continued its participation and lobbying for the development of a port in the Special Economic Zone of Sovetskaya Gavan. A number of options continue to be assessed, notably a bulk-only or a bulk and container terminal. Additional capacity at Sovetskaya Gavan would address constraints at the established Vladivostok and Nakhodka ports, and provide some flexibility as a more northerly access route to the Sea of Japan and Pacific.