31 C
Belgrade
Supported byspot_img
spot_img

Russia's Polyus Gold & Polymetal JV gold project

Member of Europium Groupspot_img
Supported byspot_img

Polyus Gold OJSC is the biggest Russian producer may bring Chinese partners into the Natalka project in the east. Talks with China National Gold and others are continuing. In the meantime Polyus Gold is joining Polymetal International on the joint venture project of Nezhdaninskoye gold field development.

Polymetal International Ltd is teaming up with its larger Russian competitor, Polyus Gold OJSC, to develop one of the country’s largest deposits of the precious metal, their first major joint project.

Polymetal is buying 15.3 percent in a joint venture with Polyus to develop the Nezhdaninskoye gold field in Russia’s Far East, the companies said in joint statements. The initial stake costs $18 million, and Polymetal may raise its stake to 50 percent if it agrees invests another $72 million in the second stage of the project, which Polymetal will manage.

Supported by

The tie-up will help with “fast tracking” the deposit, Polyus Chief Executive Officer Pavel Grachev said in the statement. Polyus will get $10 million for the stake, and the remaining $8 million will be invested in exploration.

Russian investments in gold output have dwindled since 2012 as prices slumped. After peaking in 2014, production may decline starting from 2017 without investments in new projects, according to the Union of Gold Producers of Russia. Polyus and Polymetal said Nezhdaninskoye is estimated Russia’s fourth-largest deposit, holding about 20.3 million ounces of reserves.

The deposit has significant potential for a high-grade mine with a long life, Polymetal CEO Vitaly Nesis said in the statement.

Polyus bought 50 percent of Nezhdaninskoye from diamond miner Alrosa PJSC in 2005 and the remaining half in 2006 for $300 million. An accord on developing the project signed in 2009 with Kinross Gold Corp. collapsed. Production hasn’t yet begun.

Source: Bloomberg

Supported byElevatePR Digital

Related News

CATL explores $1.5 billion fund to boost global battery supply chain

China's Contemporary Amperex Technology (CATL), the world's largest electric vehicle battery manufacturer, is in discussions with overseas sovereign wealth funds and private offices of...

Securing Europe’s critical raw materials: Addressing funding challenges for sustainable extraction

Bernd Schäfer, CEO of EIT Raw Materials, advocates for substantial investment in Europe's mining sector following the implementation of the Critical Raw Materials Act...

Strengthening global sustainability: The SCMA and critical minerals for climate goals

Canada's Minister of Energy and Natural Resources, Jonathan Wilkinson, together with Sweden's Minister for Energy, Business and Industry, Ebba Busch, announced Sweden's accession to...

Nickel mining and the green energy challenge: Balancing supply with environmental responsibility

Nickel is poised as a critical element in the global shift towards green energy, yet its extraction poses significant environmental challenges, recently highlighted by...
Supported by
Supported by
Supported by
error: Content is protected !!