Prime Minister Dmitry Medvedev has signed a decree confirming the victory of a joint venture between miner Polyus and state conglomerate Rostec in an auction for Russia’s biggest gold deposit Sukhoi Log with a 9.4 million-ruble bid, according to a document released on the government Web site.
Natural Resources and Environment Minister Sergei Donskoi said the license would be issued within a week.
“I have authorized my colleagues to issue the license as soon as possible, within a week. We have kept the project in store for too long, now is the time to get the ball rolling. We will grant the rights for development within a week, and the company will complete the remaining payment within a month,” Donskoi wrote on his Facebook page.
The deposit located in the Irkutsk region accounts for 28% of all Russia’s gold resources. It has 1,656 tons of inferred gold resources under a B+C1+C2 category, 1,533 tons of silver and 522 tons of off-balance gold reserves. The Natural Resources and Environment Ministry said the deposit requires 90-100 billion rubles of capital investments to produce 80-90 tons of gold and 20-25 tons of silver per year.
The joint venture is called SL Zoloto, and has a 51-49% shareholding between Polyus and Rostec. In January, Polyus said it planned to acquire an additional 23.9% stake in SL Zoloto from Rostec for around $141 million, after the license had been obtained.
“At the first stage of the project until 2020, SL Zoloto will have to finish research and development operation and invest at least 0.5 billion rubles,” Donskoi said. “A technical study must be finished by 2020. The project will provide for investment in the local transportation infrastructure, including an airport and a railway. It adds another 20 billion rubles of investment in the region.” (Prime/Ukrainian metal)