On 26 December 2012, deputies of Sevastopol City Council at their 9th session approved the Detailed Layout Plan of Balaklava district, Sevastopol city, and the Detailed Layout Plan in the area of Gasfort mountain that presuppose establishment of a multifunctional, year-round Balaklava Green resort of a national scale on the land of Balaklava Mine Group.

The Balaklava Green Project presupposes staged phasing out of mining and processing operations in the Balaklava Bay, rehabilitation of land and construction of a multifunctional, year-round resort centre. The implementation of the project will contribute to improvement of the environment, as well as to social and economic development of the region. The project activities are financed by Smart-Holding Company, as well as using the funds of external investors. The contemplated amount of investment into the project will make up about USD 2 billion. Once the commissioning of the resort’s facilities commences, Balaklava Mine Group will be converted into a company to manage the infrastructure of the Balaklava Green resort. The implementation of the Balaklava Green Project will virtually double the number of working places in the company.

Preparation of the company’s territory for the implementation of the Balaklava Green Project began at Balaklava Mine Group in 2011 and continued actively in 2012. Thus, last year over 950,000 tonnes or 360 cubic meters of mined rock were moved from the site as part of the territory preparation for creation of the resort.

‘The recreational development of Balaklava Mine Group is an essential step in the company’s development that will not only retain the existing staff, increase the number of working places in the region, but will also have a positive effect on the social and economic development of Balaklava and the entire Sevastopol region,’ said Artur Rekov, Chief Operating Officer of Smart-Nerudprom.

A package of measures for development of Balaklava Mine Group and conversion of its mining and processing activity into the recreational business was designed by Balaklava Mine Group jointly with Smart-Nerudprom Company in early 2011.

Reference

Balaklava Mine Group (Joint-Stock Company) is one of the backbone enterprises of Sevastopol making a significant contribution into its social and economic development. The Mine Group produces metallurgical limestone, crushed-stone and sand material, quarry stone.

The Balaklava Green Project presupposes construction of a year-round resort of a national scale with application of green development principles and innovative engineering solutions. In January 2011, the project was included into Sevastopol Economic and Social Development Program. In March-April 2012, Sevastopol city and Balaklava district held public hearings focused on the detailed layout plan of Balaklava that included the Balaklava Green Project.

Smart-Nerudprom Company is a leading supplier of high-quality limestone and granite macadam to the market of Ukraine. The company was established in 2008 and operates in the field of mining non-metal and construction materials. It engages in marketing, investment, long-term business planning and production efficiency improvement, as well as in sales of products made by enterprises of non-metal industry:

- A.M. Gorkiy Balaklava Mine Group;

- Yevpatoria Construction Materials Plant;

- Saki Construction Materials Plant;

- Zaporozhnerudprom Company.