Since emerging from its financial crisis in 1998, the Russian economy has improved significantly, which is reflected in its mining sector, according to a report from Gold Fields Mineral Services (GFMS).
The report is the first in a series that will examine the risks and rewards of mining in various countries, including Mongolia, China, Brazil and Kazakstan.
The Russian instalment outlines historic mine production, tables regional production levels, rates the top 20 gold-producing companies, and assesses licensing procedures and the current tax regime.
Among the signs that Russia’s long-term investment climate is improving are a recently upgraded credit rating and the continued strong growth in the economy.
In the resource sector, recent deals of significance include the Royal Dutch Shell group’s approval of more than $1 billion for development of the Salym oil fields in western Siberia, Norilsk Nickel’s agreement with U.S.-based Stillwater Mining, and Barrick Gold’s purchase of a stake in Highland Gold.
The main risk associated with mining in Russia is the possibility of disputes, which, in the past, have caused foreign companies to have their mining licences terminated or suspended. The report highlights some of the potential pitfalls.
Nevertheless, the opportunities are considerable: Russia has vast unexploited reserves and resources, and many of these deposits have been explored and documented through years of state-sponsored programs.
The report was produced in association with Moscow-based NBL Gold, a consulting firm. NBL has licences from the Russian Ministry of Construction and from the Russian Federal Mining and Industrial Inspection to design mines, processing and metallurgical plants, and tailing dumps in Russia, as well as in other member nations of the Commonwealth of Independent States.
The 36-page report sells for US$1,950 and is available by visiting www.gfms.co.uk
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