International consortium to develop Klyuchevskoye field

18 Oct 2016

A multilateral agreement of intent on the joint implementation of the Klyuchevskoye field development project (Zabaykalsky Krai) with participation of investors from Brazil, Russia, India, China and South Africa. The international consortium includes state gold company China National Gold (China), Sun Gold (India), TransAfrica Capital (South Africa), investment fund of Antonio de Moraes (Brazil). The participant from the Russian side is the Far East Development Fund (FEDF). Creating of the alliance will allow accumulation of necessary financial resources for the project to reach the industrial mode of operation in 3 years after obtaining the necessary permits for its implementation. Investors from the BRICS countries and FEDF agreed to invest in the creation of industrial facilities and infrastructure for the development of gold mining in the Klyuchevskoye field up to $500 million - before the project reaches the operational stage. The target investment share of FEDF will be up to 15%, fixed assets will be provided by China National Gold and Sun Gold together with partners from South Africa and Brazil. The project is expected to process up to 12 million tons of ore to produce about 6.5 tons of gold per year, which will increase gold production in the Zabaykalsky Krai by 50%. According to preliminary estimates, the project will provide the GRP increase by 65.8 billion rubles, will bring additional tax revenues in the amount of 5.5 billion rubles by 2026. About 700 new jobs will be created directly in gold mining, and a few thousand in related sectors and industries. Russia is among the top three countries by gold reserves. Gold mining is one of the most promising sectors of the domestic industry, it has growth potential as 14% of the world's known gold reserves are concentrated in Russia. “We welcome the joint efforts of all BRICS countries, aimed at realization of promising gold project in the Zabaykalsky Krai. Creating of an international investment platform is an important example of a mutually beneficial partnership that pulls up new prospects for the realization of new large-scale investment projects in Russia and, in particular, in the Far East,” said Alexey Chekunkov, FEDF’s General Director.

Source: Metalpurchasing and sale