August 10, 2022

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Russia’s Polyus to invest $600 mln growing its next biggest mine

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MOSCOW, Dec 23 (Reuters)Russia’s largest gold producer Polyus PLZL.MM will devote $600 million on the construction of a new gold processing plant and update of its Blagodatnoye mine in Siberia, its most important supply of in close proximity to-phrase output advancement.

Immediately after the development of Mill 5, which will start off following year, Polyus will focus on the progress of its giant Sukhoi Log deposit.

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

Polyus programs to generate 2.8 million troy ounces of gold in 2020 and sees capital expenditure of between $700 million and $750 million this calendar year.

The new Mill 5 will deliver 390,000 ounces of gold a year following its launch in 2025. Located close to Polyus’ flagship Olimpiada mine, Blagodatnoye is the firm’s 2nd premier mine and the new mill will pretty much double Blagodatnoye’s whole output.

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

The delay means Polyus has been able to let for further coronavirus-related pitfalls in the project’s timeline. The launch day now usually takes into account probable delays in supply of machines and travel limits for personnel, Stiskin said.

The CFO included that the company at this time has a massive gold useful resource portfolio, but it could look at purchasing gold exploration licences more than the more time phrase.

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

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