Russia gold mine deal inked at BRICS summit

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Monday, October 17, 2016

Investors from the member nations of the BRICS group have signed a memorandum of understanding to jointly develop the Kluchevskoye gold deposit in eastern Siberia, Indian newspaper The Economic Times reported.

The deal, considered the first mining agreement of its kind involving investors from each of the nations in the group – Brazil, Russia, India, China and South Africa – was signed Sunday on the sidelines of the 8th BRICS Summit, held in Goa, India.

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The signatories are India-based Sun Gold, China National Gold Group, the Russian Sovereign Investment Fund, Far East and Baikal Region Development Fund, investor Antônio de Moraes from Brazil and South Africa's Trans Africa Capital, according to the report.

"The proposed joint venture aims to develop the Kluchevskoye gold deposit into a significant open pit mine and heap leach operation with an expected production rate of 12Mt/y of ore and gold and gold doré production of over 6.5t/y, as per feasibility study done by Changchun Gold Design Institute," the paper said.

Pre-production investment is expected to be in the US$400mn-500mn range.

China National Gold will be the major shareholder and will raise financing for the project, it added.