China is willing to enter into projects in the Far East

05 Sep 2016
China is set for specific transactions on entering the Russian gold projects, particularly in the Far East, said to Izvestia the head of the Union of Gold Producers of Russia Sergey Kashuba. He explained that such major Chinese companies such as Zijin Mining, China Gold, Zhaojin Mining Industry and Shandong Gold have demonstrated interest in Russian projects. At the same time, Chinese investors have focused on obtaining a controlling stake in the project. According to him, fully state-owned companies and major players with state participation can act as investors. In addition, a pair of Chinese funds are now analyzing the Russian market for entering it as portfolio investors. Chinese investors have decided to divide our market by volume. For example, one company is willing to enter into projects with reserves of up to 50 tonnes of gold to avoid difficulties with the law on strategic fields, another - from 50 to 100 tons. Moreover,  recently at a conference in Beijing, one of China's companies announced plans to enter the Russian market in terms of assets with reserves of 100 tons of gold and more. Thus, there could be lack of competition and the logic of investors from China. They go of the size of their companies, watching our facilities on the basis of its features,” said Kashuba. Among the main reasons for the interest of Chinese investors in the Russian gold mining industry, is actively developing relationships with Chinese partners during about five years, as well as tax incentives in the Far East. As reported, according to the information of the FAS Russia, China National Gold Group completes acquisition of share at SUN Gold Ltd in 70% of the project development of gold deposits Kliuchevskoe (A + B + C1 - 47,8 tons, C2 - 26.6 tons, off-balance - 4 tons) in the Trans-Baikal Krai.
Source: Uncommercial joint ownership "Trans-regional Association  of precious metals producers"