Russia sells Sukhoi Log gold deposit to Polyus-Rostec JV (updated)
26/01/2017 08:56
(Adds details, quotes, context)
MOSCOW, Jan 26 (Reuters) - Russia has sold the right to
develop Sukhoi Log, one of the world's largest untapped gold
deposits, to a joint venture of miner Polyus PLZL.MM and state
conglomerate Rostec, Russian Natural Resources Minister Sergei
Donskoi said on Thursday.
This joint venture, SL Zoloto, was widely seen by industry
players as the front-runner at the auction the Russian
government held on Thursday after 20 years of promises to sell
the deposit. urn:newsml:reuters.com:*:nL5N1EO0W0
SL Zoloto will buy the deposit for 9.4 billion roubles ($158
million). The starting bid price was 8.6 billion roubles.
"The development of such a large project will have a
significant impact on social and economic development of Irkutsk
region (where Sukhoi Log is based)," Donskoi told reporters
through his representative.
Polyus and Rostec declined immediate comment.
According to Soviet-era research, the deposit contains 1,943
tonnes (62.5 million troy ounces) of gold in its reserves.
However, the real value of the deposit is hard to estimate
because the research was done in the 1960s.
Sukhoi Log will require up to $5 billion in investments,
according to industry estimates based on a 10-year-old state
feasibility study.
($1 = 59.6560 roubles)
(Reporting by Polina Devitt; editing by Maria Kiselyova and
Susan Thomas)
((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))
Keywords: RUSSIA SUKHOILOG/