Kinross Gold may increase gold production in Russia this year
Canadian Kinross Gold Corporation may significantly increase the volume of its gold production in Russia during the next several years, according to recent statements of the company.
As part of these plans, the company may accelerate production at its flagship Russian gold mining fields, and in particular Kupol and Dvoynoey, which are located in the Chukotka region of Russia.
To date, Paul Rollinson, CEO of Kinross Gold, has had a meeting with Sergei Donskoi, Russia’s Minister of Natural Resources during the St. Petersburg Economic Forum, where they discussed the possibility of the increase of Kinross investments in the Russian gold mining.
According to Rollinson, Kinross will continue exploration of its main mining sites in Chukotka, and will also consider other opportunities for investments.
At the same time, according to Lu Naumovski, Vice-President of Kinross Gold, the increase of Russian production may take place through the beginning of gold production at Moroshka and Sentyabrysky fields, two other gold mining fields of Kinross in Chukotka, which are located close to Kupol and Dvoynoey. The production at these fields may be officially launched in 2018.
Overal, Kinross currently operates 14 mining sites in Russia, in different regions of the country, on which currently conducts exploration and production activities. The company plans to stay in Russia for the future, despite the existing Western sanctions against the country and has also not ruled out the possibility for the participation in the tender for the development of Sukhoi Log, Russia’s largest gold mining field, which is scheduled for the end of the current year.
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The company plans to win the tender and start the development of the field, despite low gold content of its ores.
According to Naumovski, Kinross already has experience of the development of fields with low gold contents, and operates such a mine in Brazil.
Earlier this year Kinross Gold announced its plans to achieve a record growth of production at its gold mining fields globally this year, which should reach 2.9 million ounces.
In the case of Russia, during the period of January-May 2016, the volume of gold production of Kinross in Russia amounted to 8.7 tonnes (about 0.28 million ounces), while in the case of silver to 62.4 tonnes (2 million ounces).
In the meantime, from its side, the Russian government plans to significantly rise the investment attractiveness of the domestic mining, with the aim to attract more foreign investments, and in particular those from Canada.
As part of these plans, the Russian government will improve the national legislation in the field of subsoil use, to complete the design of new economic incentives to foreign investors, as well to reduce administrative barriers.
According to Donsky, this year the Russian government plans to adopt a new classification of mineral reserves, that should help to ensure the balanced reproduction of mineral reserves, which are needed for domestic consumption and exports.
There are also plans to design a new economic model, that will involve the deduction of expenses for exploration from the income tax of foreign investors, operating in the Russian mining industry.
Eugene Gerden is an international free-lance writer, based in St. Petersburg, who specializes on writing in the field of mining, metals and rare earth metals. ... <Read more about Eugene Gerden>