Gold

Russia opens subsoil for foreign companies

The government may ease operation conditions of foreign state-owned companies in Russia. Until now, they could get in projects of strategic deposits development in the country not more than 25%. Primarily, this liberalization aims to attract investors from China, India and the Middle East. Primarily state-owned companies conduct international expansion just in these countries, and Russia will reorient to partnership with them in condition of conflict with the West over the Ukraine.
The Government has instructed the Ministry of Natural Resources, Ministry of Economy and FAS to consider whether to give foreign investors the opportunity to increase their share in companies, which develop subsoil plots of federal importance (large deposits of oil, gas, gold, nickel, platinum and copper) in excess of the limit, set by the legislation. This topic was raised by CEO of Metalloinvest Andrei Varichev at the Cabinet’s meeting on July 10; he offered to amend the law "in terms of increasing the possibility of the presence of foreign investors – certainly, through consideration by the Government Commission - from 25% to 49%". According to him, such measures are necessary for the development of large deposits, in particular to attract project financing.
Now, according to the federal law 57, there is a special procedure of foreign investments in companies that hold licenses for subsoil plots of federal importance. These companies are considered to be controlled by a foreign investor if it has a share of 25% or more.

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Polymetal increases its assets

Polymetal, one of the largest Russian gold mining companies, will convene an extraordinary meeting of shareholders on August 14th to consider the purchase of gold ore project of Kyzyl in Kazakhstan, the RIA Novosti reports, referring to the company.
The Kyzyl project belongs to holding company Altynalmas Gold Ltd, owned by Sumeru Gold B.V. and Sumeru LLP. At the end of May, Polymetal reported about the purchase of Altynalmas Gold Ltd for $618.5 million. As the Kommersant wrote, the final owner of Altynalmas is member of the Gazprom’s Board of Directors, the Kazakh businessman and politician Timur Kulibaev, husband of one of the Kazakh President Nursultan Nazarbaev’s daughters.

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"Pavlik" to determine the Rodionovsk stocks by March 2015.

JSC "Gold Mining Company "Pavlik" (part of the FC "Arlan") expects to prepare a feasibility study of the temporary exploration conditions for the Rodionovsk deposit reserves (the Magadan Region) in March, Viktor Troitskiy, the executive director for the GMC exploration, told the PRIME agency.
"We are now at the stage of feasibility study of the temporary exploration conditions - Viktor Troitskiy stated. – We’ve already cut 27 kilometers, the feasibility study will be ready by spring. We assume that the reserves will make 65-70 tons of gold with the content of 3.5 g/t. Once the technology is identified - in October-November this year, it will be possible to do the approximate outline of the start-up cost".

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Vysochaishy will get control in Krasnoye project Kopy Goldfields

Vysochaishy JSC (GV Gold) and the Swiss Kopy Goldfields AB have closed the deal of where the shareholders in the Russian company get 51% in the project of the development of the Krasnoye deposit in the Irkutsk region. Now its owner is Kopy Goldfields. Vysochaishy will finance the geological exploration program for $6 million in exchange for the controlling shareholding in the project. Besides from that, Kopy Goldfields AB will get $1 million to cover the current debts and $2 million in addition, depending on the results of the geological exploration.
The geological exploration will be completed within 18 months including the time for preparing and the admission of the report with the calculation of reserves under the demands of the state reserves commission. During the execution of the work, the Swiss company will be operator of the project.

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Vostok-1 A/S reduces production by 9% in 2014

Vostok-1 A/S, the Amur region, has reduced production by 9% to 200 tons in 2014, the director of the team, R. Lomakin says. In the season 2014, the team began the development of Kinlyandyak, the new deposit in the north of the region. The awaited golden resources at the deposit are 290 kg under the results of drilling.

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Chukotka increased gold production by 75.6% in January-June

The subsurface users of Chukotka increased gold production by 75.6% up to 14.762 tons, silver – reduced by 4.2% to 72.612 tons in January-June 2014 year-on-year. The industrial policy, construction, housing and utilities department of Chukotka Autonomous Area states.
“The companies, producing gold at placer mines, produced by 3% of gold more than last year,” they said at the department.

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Polyus Gold looks for funds for Natalka deposit in China

On the background of the world price fall for gold Polyus Gold of S. Kerimov has started to look for funds for its main project – the Natalka deposit where it has already invested $1.3 bln – in China. On the unofficial data, the company is negotiating with banks and companies which are offered to join the project. But the final parameters of the project and the total investment volume are not clear that might delay the discussion of the financing conditions with China.
The largest Russia gold producer, Polyus Gold (S. Kerimov holds 40.2%) is negotiating with Chinese investors on the financing of the development of the Natalka deposit, sources of Bloomberg reported. Sources of Kommersant close to the company and in the market confirmed this information. According to them, the negotiations are at the early stage and are held simultaneously with a few potential investors and banks. Various forms of funds attracting are discussed – from the project financing to the sale of a minority stake in the Natalka project. The executive secretary of the Russian-Chinese chamber on mechanic-technical and innovation production trade facilitation, S. Sanakoev, is aware of the fact of the negotiations. He showed confidence that investors who are interested in the offer of Polyus Gold will be found in China. Representatives of the company and Mr. Kerimov refused to comment.

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Polyus Gold has closed a number of hedge contracts

Polyus Gold Int Int has closed contract for sales of 88 tons of gold until the middle of 2018 under several schemes protecting the company from the market fluctuations in price. The volume shares 40% of possible production within the period.
The company has large-scale investment program, including $700 million for 2014. The major part of $320 million is financing to the launch of the Natalka deposit with reserves of 1,270 tons of gold with average gold content of 1.13 g per ton.
Gold is sold by $1,300 per ounce and not all banks believe in the pessimistic forecasts about the price but Polyus Gold has made the non-traditional decision to close the hedge contracts for gold sales.
In the end of May, the acting CEO P. Grachyov told to the journalists that Polyus awaits gold price of $1,300-$1,400 per ounce.

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Scientists of Novosibirsk develop new technology to reduce losses during gold mining

Novosibirsk physicists have developed a unique technology, with which you can capture the tiniest particles of gold that will help to reduce losses during gold mining, its developer, Sergey Afanassenko reported.
"Up to 70% of gold reserves in the crust are gold dust of about 50 microns. This is so-called “river-bar gold" that can’t be caught by miners. It literally "floats" from hands - about 8 tons of gold per year gets the global ocean only from the Amur River,"- said the scientist.
The invention is a centrifuge with a special liquid with nanoparticles. Under the influence of the magnetic field the liquid increases its density, and as a result copper (or other impurities) float to the surface and gold lowers.

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New industrialization in the regions of Kazakhstan

On July 2nd 2014 the information on the executed works in the framework of the realization of the State program of forced industrial-innovation development of Kazakhstan for 2010-2014 was released. The State program of forced industrial-innovation development aims for a stable and balanced economic growth via diversification and rise of its competitiveness.
Until 2015 the priority of the forced industrialization policy was the realization of large investment projects in the traditional export-oriented sectors of economy, with multiplication of new business opportunities for small and medium business via target development of the Kazakh contents, further processing.

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