TASS, September 14. Canada’s Kinross Gold sold its Russian assets, but this fact does not affect gold production or work at deposits in the Chukotka Autonomous Region, Governor Roman Kopin said.
In June, Kinross Gold closed the deal to sell its Russian assets. Highland Gold Mining has paid $340 million. One of the assets, sold under the deal, is the Kupol (cupolas) mine in Chukotka.
"As the deal was closed, Highland Gold now owns two assets - the Chukotka Mining-Geology Company and the Northern Gold Company. They work smoothly - the management has changed, and the personnel continue working," the governor said. "Both companies are leaders in the region, though we do register a certain decline in gold production since this year’s beginning. However, this is explained not by organizational aspects, but by the logical exhaustion of the deposits. All geology exploration works to find new deposits continue as planned."
The governor continued by saying he had never doubted the Russian company’s effectiveness, as, according to experts, Highland Gold experienced in managing mines and in implementation of projects from the very beginning. The company has gold production projects in the Khabarovsk, Kamchatka, Trans-Baikal regions as well as in Chukotka. Additionally, the company owns assets in Kyrgyzstan.
"Those competences have guaranteed smooth work at both deposits and their social and economic potential," the governor said. "This transition, comfortable for the staff, from the Canadian corporation to Highland Gold proves the active consolidation of the Russian gold production sector. It is a good example, showing Russian companies in the production scales, in the level of management and technologies are comparable with modern foreign companies and already compete with them."
Chukotka is the Far Eastern Federal District’s leader in gold production, which since the beginning of the current year has dropped by 13% due to the reserves’ exhaustion.
Coal deposits
At the same time, Australia’s Tigersrealmcoal continues working in the Beringovsky coal basin in the Chukchi Peninsula’s east. According to the regional industrial officials, the company does not plan to suspend the work in Russia. On the contrary, it has been building up the assets.
"The big Australian company, which works in Chukotka, plans to upgrade the Beringovsky sea port near the Verkhne-Alkatvaam deposit, to restore the existing handling facilities, to buy new dry cargo vessels, to build warehouses and to make the dredging. The company plans to produce more than 1.1-1.2 million tonnes of coal a year," the regional government said.
The planned upgrades will allow the Australian company’s Russian enterprises Beringpromugol and Port Ugolny to build up production, transportation and export of coal to the Asia-Pacific countries. Additionally, the companies will continue to satisfy fully Chukotka’s demand in coal.
Gold for ourselves
A veteran of the regional geology exploration, Chukotka’s first geologist coming from the low-numbered indigenous peoples, Georgy Tynangerkav, says though it is possible and useful to rely on foreign companies, Russian mining companies are able to cope with the problems they are facing. He stressed the importance of building up geology exploration works.
"Over recent 30 years, the Russian geology has experienced hard times, though every year gives more hopes," he said. "The prestige of our profession is recovering, but as yet drilling has been done by the companies. They both produce and load, sell; while quality work means everyone is carrying out a certain task."
According to him, Chukotka’s future is connected with investment projects to develop the world’s biggest copper deposit - the Baimskaya ore zone, the Pyrkakayskoye tin deposit projects. Without doubt, developing deposits in hard-to-reach areas will cause problems, but Russian companies will cope with them by using professionally planned infrastructures, he added.
"Apparently, those deposits are very complicated in terms of development," he said. "Copper deposits, similar to the Baimskaya (ore zone), are only five in the world. Thus, the experience of developing them is only limited. Here, infrastructures will be helpful for Russian companies - the development of the Northern Sea Route, the construction of a road between Chukotka and Magadan, the upgrade of port facilities, and others."
The expert said he was not concerned about rumors regarding a ban on supplies of Russian gold to unfriendly countries. "The Central Bank positively needs our gold, like do producers of electronics, like industrial companies do," he said. "Anyway, the Asia-Pacific Region is just nearby, thus the companies in Chukotka continue working with no fuss."