The Kimkan and Sutara mine, better known as K&S, is a small mine located in the Jewish Autonomous Region (EAO) of the Russian Far East. It is 100% owned by Hong Kong listed IRC. After numerous delays, K&S is ramping up production with 1.6 Mt produced in 2017. While the plant has operated for a brief period at full capacity and was said to be operating at 78% capacity at the end of June 2018, there remain bottlenecks in the production process including issues with the drying unit and the mining contractor, CNEEC. The plant is expected to be operating at full capacity toward the end of 2018 and we have assumed that they will produce 3.2 Mt from 2019 onward. K&S has been designed to have a second phase that would double its production capacity to 6.3 Mtpa but IRC has experienced technical and funding issues throughout Phase 1 and as such, we do not expect they will be able to secure the capital necessary to build Phase 2.