Preliminary figures indicate Russian mining companies produced 8.8 million tonnes of gold in the first quarter of 1998, 1.1 tonnes more than in the corresponding period of 1997.
The Russian economics ministry’s Department for Precious Metals and Gemstones attributed the increase to the efforts of Omolon Gold, a joint venture half-owned by Cyprus Amax Minerals, which mines the Kubaka gold deposit in the Magadan region. Omolon accounted for more than 30% of the 26.1 tonnes of gold produced in Magadan last year.
Funding shortfalls among placer mining companies, which together produce more than 60% of Russia’s gold, are expected to drop total gold production below that of 1997 during the placer mining season, which begins this month.
Meanwhile, platinum and palladium exports from Russia, the world’s largest producer, are expected to be “approximately as much” this year as in 1997, says Sergei Gorny, deputy general director of the Almazjuvelirexport foreign trade company.
The State Reserve for Precious Metals and Stones has not bought platinum-group metals from major producer Noril’sk Nickel since mid-1996.
The delay has cost Noril’sk $50 million, according to a company source.
Noril’sk recently received a syndicated credit of $110 million, organized by ING Barings, to top up working capital and to finance upgrades. The credit is guaranteed by supplies of Noril’sk copper.
Noril’sk Nickel reports that, thanks to steady production in 1997 and a deal to restructure debt to the federal budget, the company is now in a position to attract investment.
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