By Clement Bigot, legal expert and consultant in international relations, for Eurasia Business News – September 20, 2021.
The Russian gold mining company Highland Gold, owned by Vladislav Sviblov, will buy the company “Gold of Kamchatka”.
“The agreement has been signed, several mandatory procedures remain to close the deal“, reported the press agency Interfax.
The Kumroch project, sold in April by the mining company Gold of Kamchatka to Andrey Komarov, the former owner of ChTPZ (Chelyabinsk Pipe-Rolling Plant) is not included in the deal with Highland Gold.
Other terms of the deal, including the cost, were not disclosed.
“With the acquisition of this asset, Highland Gold is expanding its portfolio of upstream assets and development projects. This will have a positive impact on operating and financial performance” explained Highland Gold to Interfax.
Sviblov also owns Trans-Siberian Gold (TSG), which develops the Asachinskoye field in Kamchatka. Production for 2020 amounted to 1.3 tons of gold.
The owners of “Gold of Kamchatka” have been looking for a buyer for a long time. So, back in 2017, the Russian mining company GV Gold agreed to buy the company for $ 500 million, but the deal did not materialize.
“Gold of Kamchatka” (Zoloto Kamchatka) is one of the top 15 gold mining companies in Russia. According to the Union of Gold Producers of the Russian Federation, in 2020 the group produced 4.2 tons of gold. Zoloto Kamchatka holds 11 licenses for the development of deposits with a total resource base of over 400 tons of gold. Both operating enterprises (GOKs “Ametistovoe” and “Aginsky”) are located in Kamchatka peninsula.
“Gold of Kamchatka” is one of the largest taxpayers in the region, annually transferring several hundred million rubles to the federal and regional budgets. The company also created more than 2,000 jobs on the peninsula.
Highland Gold is among the top ten Russian gold miners with a production amounting to 8.5 tons in 2020, according to the Union of Gold Producers. The main projects are located in the Khabarovsk Territory and Transbaikalia, in Chukotka, as well as in Kyrgyzstan.
Russia hosts several large gold mining companies, such as PJSC Polyus, a global leader competing with Canadian and US gold producers. Polyus is the world’s fourth-largest gold mining company by production volumes and the largest gold miner in terms of attributable gold ore reserves.
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© Copyright 2021 – Clement Bigot, legal expert and consultant in international relations.