Russian Ural Mining and Metallurgical Company plans to acquire one of leading domestic gold producers

UMMC. Photo: Verkhnay Pyshma

The Ural Mining and Metallurgical Company (UMMC) has filed a petition with the Russian anti-trust regulator the Federal Antimonopoly Service (FAS) to buy 100% of the gold mining company Vysochaishy (GV Gold), one of Russia’s largest gold producers.

 

According to the FAS norms, it will be considered within 30 days (the period can be extended by no more than two months).

 

According to Russian Vedomosti business paper GV Gold is one of the top 10 leading Russian gold mining companies. In 2020, the company produced 272,200 ounces of gold (7th place in Russia). Vysochaishy operates in the Irkutsk Region and Yakutia, and its assets include six gold recovery plants with a total capacity of up to 10.5 million tons of ore per year and about 15 geological exploration licenses. Gold reserves at the company's deposits are estimated at 5.3 million ounces, resources - at 10.8 million ounces.

 

On March 15, 2021, Vysochaishy announced plans for an IPO on the Moscow Exchange. The company planned to place about 37% of its stake with an estimate of its capitalization at RUB 90.7-112.7 billion. But on March 29, the company announced that it would postpone the IPO due to the increased level of volatility in the market.

 

The main area of work of UMMC is the production of copper, zinc and coal. But the company also produces gold and silver as related components in the mining of non-ferrous metals. UMMC does not disclose the volume of gold production.

By: Eugen Gerden