Polymetal prefer Kazakh gold project

Polymetal has decided to stop the development of the majority of its deposits in Russia and focus on the new project “Kyzyl” in Kazakhstan where $640 mln will need to be invested. Analysts consider the approach to be correct but point out the technological difficulties: none of the former owners of Kyzyl has managed to start production due to the difficulties with its refractory ore.

Polymetal (major shareholders – PPF Group of P. Kellner, IST Group of A. Nesis and businessman A. Mamut) has announced that until 2018 it will focus on the development of the Kyzyl project in Kazakhstan having closed and shutdown a number of projects in Russia. Polymetal doesn’t plan to expand its production in Albazino (239 thousand ounces of concentrate in 2013), to reduces work on the exploration projects of Kutyn (Khabarovsk region) and Maminskoe (Sverdlovsk region). Only the development of the Svetly in the Khabarovsk region (reserves 0.7 mln ounces, cost - $90 mln), whise launch in 2017 has been approved. According to the head of Polymetal, V. Nesis, the company will focus its resources on the low-cost projects with low risk and good perspectives of growth.