Russia’s Polyus to devote $600 mln increasing its 2nd most significant mine

Karen

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MOSCOW, Dec 23 (Reuters)Russia’s greatest gold producer Polyus PLZL.MM will invest $600 million on the development of a new gold processing plant and up grade of its Blagodatnoye mine in Siberia, its primary supply of close to-time period output advancement.

Just after the development of Mill 5, which will get started subsequent 12 months, Polyus will focus on the growth of its giant Sukhoi Log deposit.

“The major part of the expense programme at Blagodatnoye does not coincide with the peak of investment in the Sukhoi Log improvement,” Mikhail Stiskin, Polyus’ chief financial officer, advised Reuters. Sukhoi Log investment decision will peak immediately after 2023.

Polyus plans to make 2.8 million troy ounces of gold in 2020 and sees money expenditure of among $700 million and $750 million this calendar year.

The new Mill 5 will make 390,000 ounces of gold a 12 months following its launch in 2025. Found close to Polyus’ flagship Olimpiada mine, Blagodatnoye is the company’s next largest mine and the new mill will pretty much double Blagodatnoye’s complete output.

A feasibility study for the new facility had been expected this summer time, but the COVID-19 pandemic delayed it right up until now.

The delay suggests Polyus has been equipped to permit for further coronavirus-similar risks in the project’s timeline. The launch date now can take into account feasible delays in shipping of machines and vacation limits for employees, Stiskin explained.

The CFO extra that the business currently has a huge gold useful resource portfolio, but it could consider buying gold exploration licences around the for a longer time time period.

(Reporting by Polina Devitt editing by Kirsten Donovan and Jason Neely)

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