Subscribe free to our newsletters via your
. Energy News .

Russia's Nord Gold wins license for Siberian gold field
by Staff Writers
Ulan-Ude, Russia (UPI) Oct 14, 2013

disclaimer: image is for illustration purposes only

A mining company owned by Russian steel industry oligarch Alexei Mordashov has won a long-sought license for gold exploration in eastern Siberia.

Mordashov's Nord Gold N.V. announced Friday its 85-percent-owned subsidiary, JSC Buryatzoloto, was the winner of an auction for a 25-year exploration license in the Zhanokskaya gold area in the Republic of Buryatia, along Lake Baikul in the southern part of East Siberia.

Nord Gold Chief Executive Nikolai Zelenski said the company will pay $300,000 for the license at Zhanokskaya, located adjacent it existing Buryatzoloto license area.

"The Zhanokskaya field is a geologically promising area located next to our Irokinda mine," he said. "Its ore could in the future feed the Irokinda processing plant, thus leveraging our existing infrastructure. We are very pleased to have acquired this license."

The field is estimated to contain 20 tons of gold in the "P2" Russian resource classification and 40 tons in "P3" resources, the company said.

In 2012, JSC Buryatzoloto produced and sold 108,900 ounces of gold for $173 million, receiving a net profit of $46.5 million, the Russian business daily Kommersant reported.

Nord Gold has been seeking the Zhanokskaya license since 2009.

The local Buryat power utility had repeatedly tried to sell mineral extraction rights to the Zhanokskuyu field since 2006, but each time canceled the auction due to a lack of qualified bidders. In 2009, for example, JSC BuryatZoloto couldn't demonstrate sufficient resources to develop its gold potential, the newspaper said.

But since then, Nord Gold has evolved and boosted its economic clout.

Because the gold deposits in Russia and the Commonwealth of Independent States partners are mainly already divvied up among existing competitors, it has moved overseas to build up its low stocks.

Last month, Nord Gold received a three-year option to join Canada's Columbus Gold Corp. to develop large gold deposits at French Guiana's Montagne d'Or, potentially making it the first Russian gold producer in South America.

Under that deal, the Russian company will take a 50.01 percent stake in the company Sotrapmag Sas, which owns the license for the deposit, which holds an estimated 4.15 million ounces of gold, with a the metal content of 2.2 grams per ton, Kommersant reported.

The $300 million French Guiana project is expected to launch in late 2018, eventually producing more than 100 million ounces of gold per year.

Mordashov, head of the Russian steelmaker Severstal, last year spun off the company's gold-mining assets to form Nord Gold, then took it public on the London Stock Exchange.

Worth an estimated $18 billion, Mordashov is the son of parents who both worked in the Severstal steel mills. He began his career there in 1988 as a senior shop economist and became its chief financial officer in 1992.

In 1996, he was appointed Severstal's chief executive officer, rising to become chairman of its board of directors in 2002.

Mordashov's interests also include timber as owner of the plywood producer Sveza Group.

Last week Sveza announced plans to team with Finland's UPM Kymmene to build a $2 billion pulp mill in the Vologda region 300 miles north of Moscow.

Mordashov told Interfax the mill, expected to produce more than 1 million tons per year, will take up to five years to build, with the exact timing depending on the securing of state and local approvals."

He said Sveza is seeking implement a public-private partnership for the effort, with the state about $200 million in infrastructure costs, tax breaks and government loan guarantees.


Related Links
Global Trade News

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Latin America's commodities-fueled growth slowing
Brasilia, Brazil (UPI) Oct 11, 2013
As the IMF and the World Bank see Latin American economic growth faltering and a recovery unlikely before 2014, a dim outlook for Brazil is emerging - with the biggest surprise of all in revised projections from the two international bodies in Washington. After a record high of 7.5 percent growth in 2010, Brazil's growth has been on the slide, though still strong when compared with per ... read more

US push for electric power surge in Africa hits climate snag

Asian growth changing global energy landscape

Global action needed for energy 'trilemma'

Global energy meet highlights challenge of growing demand

Radioactive shale gas contaminants found at wastewater discharge site

Don't Be Fooled by Libya - This is a Failed State

Clues to foam formation could help find oil

Russian court rules to keep more Greenpeace activists in jail

Installation of the first AREVA turbines at Trianel Windpark Borkum and Global Tech 1

Trump's suit to halt wind farm project to be heard in November

Ireland connects first community-owned wind farm to grid

Moventas significantly expands wind footprint

ET Solar Provides Solar Panels for Two Utility Projects in Chile

World First for Stand-Alone, Solar-Powered Lighting Column

UMD Robotic Bird Harvests Solar Energy

Researchers find rust can power up artificial photosynthesis

Once-in-a-decade typhoon heads for Japan nuclear plant

Japan nuclear export parts not safety checked: report

IAEA to advise Japan on Fukushima clean-up

Nuclear power still key to Japan energy mix: officials

Metabolically engineered E. coli producing phenol

Team uses a cellulosic biofuels byproduct to increase ethanol yield

Working together: bacteria join forces to produce electricity

UCLA engineers develop new metabolic pathway to more efficiently convert sugars into biofuels

Ten Years of Chinese Astronauts

NASA vows to review ban on Chinese astronomers

China criticises US space agency over 'discrimination'

NASA ban on Chinese scientists 'inaccurate': lawmaker

US Supreme Court agrees to hear greenhouse gas cases

Terrestrial ecosystems at risk of major shifts as temperatures increase

Study in Nature reveals urgent new time frame for climate change

Radical climate change just around the corner: study

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement