Gold producing regions in Russia are facing an uncertain year in light of depressed prices and economic instability, though most are anticipating production similar that of 1998.
In the northeastern region of Magadan, production for 1999 is projected to reach 30 tonnes, compared with 28 tonnes last year. The Committee for Natural Resources predicts that 18 tonnes will be mined from hard rock deposits and 12 tonnes from placer sources.
Susumamzoloto, one of Magadan’s largest producers, intends to increase output to 2.2 tonnes in 1999 from 1.9 tonnes last year. Reserves are said to have increased by more than 1 tonne last year, and a further increase of 1.5 tonnes is anticipated for 1999. The company operates the Svetly mine and is exploring the Verkhne-Khachkan and Chai-Yuriya deposits.
Berelyekh, another company, forecasts production at 1.9 tonnes, much lower than an ambitious estimate of 5.4 tonnes at the beginning of last year. Actual production in 1998 was only 1.9 tonnes, owing to flooding and a lack of capital.
Production projections at the Matrosov mine, which includes the large Natalkinskoye deposit, stand at 12.5 tonnes — the same amount churned out last year. Phelps Dodge is reportedly evaluating the operation as a possible joint venture. Previously, Placer Dome evaluated, then dropped, the project, citing uncertain economics and sketchy geological data. The Matrosov mine hosts platinum group elements, in addition to gold.
Other, smaller operations in Magadan expect production to remain steady while, at the same time, exploration efforts are stepped up.
South of Russia, in Kazakstan, Akbakaisky expects production at its namesake mine to be sustained at 1.5 tonnes. The firm plans to build a facility capable of processing gold from 3 million tonnes of tailings grading 2 grams gold per tonne. Operators expect to recover about 500 kg gold by year-end.
Meanwhile, attempts to attract Western mining companies to Russia are under way. In the western subdivision of Sverdlovsk, a portion of the Yanvarskoye and Troshinsky gold deposits are being offered to the highest bidder. Results of those tenders are to be announced in March.
Farther south, in Irkutsk, gold production is expected to rise as a result of several new operations. The region produced about 11 tonnes of gold last year. Officials in Irkutsk say they will soon reveal the terms of the tender for the large Sukhoi gold deposit. Two Canadian firms, Barrick Gold and Placer Dome, as well as South African and Russian companies, are said to be eyeing the deposit. Both Barrick and Placer were granted licences to conduct geological studies. The successful bid is to be announced in July.
Also in Irkutsk, mining at three deposits — Yubileinoye, Vysochaisheye and Pervenets — is expected to begin in 1999. The mines will be modest producers, churning out a projected total of 3 tonnes by 2001. A plant will be built to process the ore.
In Uzbekistan, Newmont Mining is set to release a feasibility study for the Angren deposits. In 1996, the company formed a joint venture with the state mining agency whereby each will own a 40% interest in the Kyzylalmasay and Kochbulak deposits. A Japanese firm will hold the remainder. The initial cost of building an operation with anticipated production of at least 12 tonnes of gold per year there is pegged at US$200 million. Newmont already owns 50% of the Murantau open pit, which produced 13.5 tonnes of gold last year. The project is projected to churn out a similar amount in 1999.
In addition, two small Moscow-based banks, Guta-Bank and Nomos-Bank, have pledged to provide funds to gold producers. Guta-Bank says it will invest US$10 million in Russian gold producers, while Nomos-Bank will finance the production of 5 tonnes, including $8 million in the Vorontsovskoye mine, in the Sverdlovsk region.
— With files from Interfax News Agency.
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