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 Russian media, the Amur River Bridge, originally planned for commissioning in mid-2018, has experienced some technical issues which caused a delay of a few months. Despite this small delay, when the Bridge is operational, K&S will be able to reduce the transportation cost to the Chinese boarder for up to US$5 per tonne, allowing K&S to strengthen its position as a low-cost iron ore concentrate producer. Moreover, the Bridge will become a part of the new export route and a stimulus for the creation of new logistical and industrial clusters, improving the transport accessibility of the region which K&S is expected to benefit indirectly. The current distance from K&S operation to the Chinese border (Suifenhe) is approximately 1,000 kilometres. 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.

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.