Kinross Gold eyes to strengthen positions in Russian gold mining sector

Photo: Nedradv

The Canadian Kinross Gold, one of the world’s leading gold producers, posted the 3.6% decline of its Russian production during the period of January-November of the current year, according to the company.

 

Most of Russian analysts believe, however, the company will try to compensate such decline by the increase of production next year. That will be also due to the recent acquisition of the Chulbatkan field in the Khabarovsk Territory by the deal as a result of a deal worth over US$283 million. Of the overall sum, US$113 million will be paid in cash, while the remaining US$170 million by shares of the company.

 

It is planned, the development of the field will allow Kinross to strengthen its position as the third largest gold producer in Russia.

 

The discovered reserves of Chulbatkan are estimated at 3.91 million ounces of gold, while predicted at 80,000 ounces. Capital investments are estimated at US$500 million.

 

As part of the plans of Kinross is conducting additional exploration works of the field in the next three years, as well as building the necessary infrastructure. Over the next six years Kinross plans to produce 1.8 million ounces of gold at a combined cost of US$550 per ounce.

 

By: Eugen Gerden