Interview with Vitally Nesis :Gold has to drop to $700-750 for closure of Varvarinskoye

The situation in the gold mining industry - both in Kazakhstan and in Russia – is following: there is a shortage of raw materials with the excess of production capacities. But investors are not interested in geological exploration companies.

How big players should negotiate with small ones – juniors, why the state shouldn’t invest in geological exploration and how devaluation of the tenge and ruble affected the gold miners – this was told the Capital.kz by general director of the group Polymetal International Vitaly Nesis.

In Kazakhstan, Polymetal owns two assets - since 2009, it has the Varvarinskoye gold and copper deposit in the Kostanai region and since 2014, the Kyzyl project, which includes the Bakyrchik and Bolshevik deposits, in the north-east.

Q: The Polymetal Group came to Kazakhstan in 2009. What were peculiarities of doing business in gold production, with which you faced?

A: We were met by a business environment, similar to Russian one. There are specifics of government regulation, but on the whole we found the familiar climate and didn’t experience significant difficulties.