MINEX Forum

Tag: gold mining

  • Britain targets Russian gold, oil sectors in new sanctions

    Britain targets Russian gold, oil sectors in new sanctions

    Britain sanctioned two of Russia’s largest gold producers, Nord Gold Plc and Highland Gold Mining Ltd. Britain’s National Crime Agency (NCA) also issued an alert to financial institutions, warning them about Russian attempts to use gold to evade sanctions.

    The two companies did not immediately respond to requests for comment.

    Those sanctioned also include a United Arab Emirates-based network which Britain said was responsible for channelling more than $300 million in gold revenues to Russia, as well as businessmen Vladislav Sviblov and Konstantin Strukov.

    “Today’s sanctions will hit those who have provided succour to (Russian President Vladimir) Putin by helping him to lessen the impact of our sanctions on Russian gold and oil – two critical sources of revenue for the Russian war machine,” British Foreign Secretary James Cleverly said.

    The NCA said it hoped its notice would put banks and traders in Britain, a key location for precious metal trading, on alert so that Russian attempts to launder sanctioned gold by masking its origin could be spotted and stopped.

    “This alert will aid efforts, in partnership with the regulated sector, including the banks and high value dealers, to ensure that sanctioned individuals or those who represent them cannot use gold to circumvent UK sanctions,” said Adrian Searle, director of the National Economic Crime Centre at the NCA.

    Britain also sanctioned energy trading firm Paramount Energy & Commodities DMCC, saying its opaque ownership structures have been used by Russia to blunt the impact of the G7’s oil-related sanctions. Paramount did not respond to requests for comment.

  • The head of Polymetal commented on ArcelorMittal’s departure from Kazakhstan

    The head of Polymetal commented on ArcelorMittal’s departure from Kazakhstan

    Gold mining company Polymetal has made a firm commitment to sell its Russian assets, which are subject to U.S. sanctions, no later than the first quarter of next year. The CEO of the company, Vitaly Nesis, informed investors about this during a conference call on the production results for the third quarter last week.

    “When we relocated to Kazakhstan in August, we signed an official commitment stating that the company will sell its sanctioned Russian subsidiary, which is listed on the Specially Designated Nationals and Blocked Persons List, within nine months. This document serves as a preliminary condition for changing jurisdiction. While we cannot be excluded from the Moscow Exchange, we believe that this commitment represents a contractual obligation for us. Violating this obligation would have serious consequences for the company,” said Nesis.

    In September, Nesis predicted that the Russian division of Polymetal International would be sold within the next 6-9 months.

    Nesis also highlighted that if the deal is not completed within the required timeframe, there may be significant consequences.

    “If we fail to meet the deadline, we will lose a substantial amount of political capital in Kazakhstan. Political capital is crucial in the mining sector. I don’t want to draw any inappropriate parallels, but it’s worth considering what happened to ArcelorMittal in Kazakhstan after multiple security failures. While we hope to avoid such a scenario, it is evident that managing potential problems arising from the loss of political reputation is of utmost importance,” he noted in response to a question about the potential issues that may arise if the company’s Russian assets are not sold within the promised period.

    According to Nesis, obtaining official approval from Russian authorities for the planned deal is unlikely to be necessary. However, repatriating the proceeds from the sale to Kazakhstan may face challenges due to currency restrictions imposed in Russia. This is particularly relevant as some of the current shareholders of Polymetal, who may benefit from the sale through dividends, are residents of countries considered unfriendly by the Russian government. The decision on dividend payments for this year will depend on the progress of the sale of Russian assets. If the deal with the Russian subsidiary cannot be completed, the company may consider the previously discussed option of establishing a separate entity in Kazakhstan, although this could have tax implications.

    One of the conditions for finalizing the deal, as discussed with potential buyers, is Polymetal’s requirement for strong assurances that toll processing of low-carbon concentrate from the Bakyrchik deposit in Kazakhstan at the Amursk hydrometallurgical plant will continue. The matter of preserving these supplies from the Kazakh mine is still under discussion with the Office for Foreign Assets Control (OFAC) of the U.S. Treasury’s Foreign Assets Control.

  • Scottish gold mine owner Scotgold in new talks

    Scottish gold mine owner Scotgold in new talks

    The company had on October 2 warned that administrators could be appointed “over the coming days” after the party which had at that stage been the “most advanced prospective investor” withdrew from discussions.

    Scotgold told the stock market today: “Further to this, the company is now in advanced discussions with a new strategic investor which, should final agreement be reached, is expected to provide sufficient funding for the company to continue as a going concern.”

    However, it added: “Whilst financing discussions are at an advanced stage, in the event the company cannot secure financing with the new strategic investor, this could result in the appointment of administrators.”

    Scotgold describes itself as “Scotland’s first commercial gold producer”.

    It poured first gold in November 2020 at its Cononish gold and silver mine near Tyndrum.

    The company noted it is developing Cononish into a “plus-23,500-ounce gold mine per annum”.

    It added: “Cononish is a high-grade underground mining operation with a central processing plant producing gold concentrate for off-take and gold doré for the Scottish jewellery industry.”

    Scotgold has in recent years highlighted its ambitions to develop other sites in Scotland.

    It noted: “It is Scotgold’s vision to build a mid-tier gold mining company in Scotland with multiple operations in the country that enhance the local environment and economy in ways that have an enduring positive impact.”

    Trading in Scotgold shares was suspended on September 11 after the company told the stock market it needed “significant capital investment” and highlighted the “highly uncertain” outcome of funding discussions.

    It said then: “On 10 July 2023, the company announced that, among other things, it was undertaking a third-party review of the Cononish mine plan for the next 12 months, encompassing a geological review of the Cononish mine mineral resource estimate (MRE) and grade control (GC) process, mine design, schedule and production forecasts. Initial findings have been fed back to the board.

    “As announced on 10 July 2023, H1 2023 was disappointing in terms of gold production and development of the underground mine at Cononish. The ability of the group to continue as a going concern over the long term would remain dependent on the quantity and grade of ore mined and processed being within a reasonable tolerance of the forecast quantity and grade and adherence to the previously planned product shipment schedule.”

    In this September 11 statement, Scotgold added: “While the geological data and documentation suggested ‘no fatal flaws’ in the MRE and GC modelling process, the draft mine plan and associated cash flow forecasts are currently being reviewed by the company, but they indicate that to deliver to the plan, a significant capital investment is required.

    “The company is actively seeking additional financing and discussions are in an advanced stage and, should they materialise, are expected to provide sufficient funding for the company to continue as a going concern. The outcome of the funding discussions is highly uncertain and if the company cannot conclude a significant fundraise, it will cast material uncertainty for the company to continue as a going concern.”

    Scotgold revealed late last month that it had placed the majority of its approximately 80-strong workforce at the Cononish mine on unpaid leave.

    This unpaid leave arrangement remains in place.

    On September 29, Scotgold told the stock market: “As at 28 September 2023, the company has placed the majority of its employees on short term unpaid leave until further notice, allowing the company time to advance the financing discussions and preserve funds to help retain some key trained staff members across mining and plant and maintenance. This care and maintenance team will maintain the company’s assets and ensure compliance with statutory, regulatory and environmental reporting obligations for the immediate future.”

  • Polymetal did not find enough gold in the Shekara area

    Polymetal did not find enough gold in the Shekara area

    The mineral exploration activities in the Shekara area of the Kostanay region in Kazakhstan have yielded disappointing results, according to a written response from Polymetal, a gold mining company registered with the Ministry of Finance and Economy of Kazakhstan. The company has determined that the area does not contain economically viable reserves for large-scale development. As a result, the contract territory is being returned to the state, and the accumulated geological data will be transferred to the state geological fund.

    Polymetal had been conducting work in the Shekara area, as mentioned in their earlier press service statements. However, it appears that a decision to halt these activities has been made in recent months. The exploration work in the area began several years ago, with Kazgeology conducting aerogeophysical surveys at the request of Polymetal to assess the potential for gold-silver and copper deposits. A joint venture named “Shekara” was established, with the national geology company holding a 25% stake. Polymetal’s subsidiary, the Kostanay company “Varvarinskoye,” also held shares in the project.

    In March 2021, the national company transferred the mining rights in Shekara to the joint venture. Geological exploration for gold, copper, and polymetallic ores covered an area of 213 square kilometers. The state invested 602 million tenge from 2017 to 2019 for geological exploration, and an additional 21 million tenge was spent from 2018 to 2021, according to Kazgeology’s report.

    It is worth noting that Polymetal is now focusing on assessing reserves in the promising Bakys area in the North Kazakhstan region. The company recently increased its stake to 75% in this gold-copper project, with “Kazgeology” holding the remaining share. Polymetal is evaluating the reserves and plans to consider production in the area after placing them on the state balance sheet. The company’s CEO, Vitaliy Nesis, mentioned the possibility of buying out the junior partner’s stake in the project in a recent interview.

    Active geological exploration in Kazakhstan is crucial for Polymetal, as their Komarovsky gold deposit in the Kostanay region is expected to be depleted by 2028. The ore extracted from Komarovsky is processed at Polymetal’s Varvarinskoye hub, which will continue operating at its current volume. The company is preparing to exploit a new deposit to sustain production as mining operations decline at Komarovsky.

    Furthermore, Polymetal is collaborating with a junior partner in the Northern Balkhash region to search for copper and polymetallic deposits. These projects in Central Kazakhstan aim to establish another processing center and involve exploration in various areas.

    Overall, Polymetal’s exploration efforts in Kazakhstan are focused on identifying new deposits to ensure continuous production and maintain their presence in the region’s mining industry.
    Meanwhile, on the tender page of LLC “TD Polymetal” on the website b2b-center.ru, it is indicated that in 2021, the company solicited proposals for tunnelling works on five licensed areas in Northern Balkhash for the requirements of TOO “Zhana Mys.” It is noteworthy that the latter was among the subsoil users who recently surrendered their license. As per the subsoil users register published in June, this company held nine licenses issued by the Ministry of Industry. Its sole founder is K.M. Dosmukametov, presumably referring to Kanat Dosmukametov, the CEO of “Polymetal Eurasia.”

    As it is known, Polymetal’s primary mining project in Kazakhstan is currently the Kyzyl project in the Abai region, which encompasses the development of the Bakyrchik deposit. It can be considered the largest gold mine in the country in terms of reserves. According to the company’s website, at the time of assessment, its reserves amounted to 9.8 million ounces in gold equivalent, exceeding 304 tons according to inbusiness.kz estimates. In comparison, the once largest Vasilkovskoye deposit in the Akmola region, known as Kaztsink, experienced a decline in reserves and resources from approximately 370 tons to 74-86 tons over the years, as reported by our publication. It is highly likely that with the complete depletion of Vasilkovskoye in the coming years, Polymetal will surpass it as the leading gold miner in the country.

    As previously reported, due to the National Bank’s priority purchase of domestically refined gold, Polymetal refrains from selling the gold it produces abroad, except for a small quantity of refractory gold in high-carbon concentrate from Kyzyl. The low-carbon concentrate from the project is transported to the company’s autoclave plant in Amursk and then returned to Kazakhstan in a processed form. Recently, Polymetal has encountered logistical challenges in delivering gold-bearing raw materials from Kyzyl to the Far Eastern ports.

    “The delivery of concentrate to the Far Eastern ports is currently facing difficulties. Russian railways are not approving applications for transporting concentrate there via covered wagons. There are no transportation issues to Amursk. Hence, we are compelled to transport the concentrate by rail to Amursk and then deliver it to the ports by road for further shipment to China. While we had a one-time experience of shipping concentrate from Kyzyl to the ports by road, it is more efficient to transport it by rail,” confirmed the company.

    Polymetal also provided comments regarding CEO Vitaliy Nesis’s recent statement to Bloomberg regarding the possibility of relisting the gold miner’s shares in London after selling its Russian division. Previously, the company’s CEO stated in a comment to inbusiness.kz that they planned to work closely over the next two years to enhance the liquidity of their shares on the AIX exchange in Astana. This decision came after the re-registration in the Ministry of Finance and Economy of the Republic of Kazakhstan, subsequent to their departure from the Jersey jurisdiction.

    “Unlocking potential on AIX and returning to LSE are not contradictory. AIX will continue to serve as the primary trading platform, while LSE can provide additional liquidity, but only after the sale of Russian assets,” clarified Polymetal.

  • AGMK: results of production activities for the 9 months of 2023

    AGMK: results of production activities for the 9 months of 2023

    I am pleased to announce that the dedicated team of the Almalyk Mining and Metallurgical Combine has achieved remarkable success in meeting all production targets for the first nine months of this year.

    The production of goods, valued at current prices, has reached an impressive sum of 22,908,419,580,000 Uzbekistani soms, surpassing the set target by 103.1%.

    During this period, the “Kalmakyr” ore management division has achieved a mining indicator of 101.3%, with a growth rate of 104.5%. The processing of copper raw materials has been carried out at an impressive rate of 100.5%, with a growth rate of 106.2%.

    In September, the production of cathode copper reached 100.0%, and the growth rate for the production of cathode copper from our own raw materials over the nine months amounted to an impressive 102.2%. Additionally, we have successfully produced metallic zinc from our own raw materials at a rate of 101.6%.

    The extraction and processing of polymetallic ore have also been commendable, with a completion rate of 104.8% (with a growth rate of 103.5%) and 103.9% (with a growth rate of 101.6%), respectively.

    Our gold miners have excelled in fulfilling their obligations, ensuring the achievement of the forecast for the extraction of gold-bearing ore (102.8%) and its processing (103.1%).

    These impressive accomplishments can be attributed to the dedication and expertise of our esteemed structural units, including the “Kalmakyr” ore management, the copper enrichment plant, the copper enrichment plant No. 2, the “Khandiza” ore management, the Angren ore management, the Chadak ore management, the “Kauldy” mine, and the zinc and copper smelters.

    Furthermore, we have successfully completed tasks related to the production of copper vitriol, enamel wire, technical selenium, technical tellurium, palladium powder, molybdenum trioxide, and ammonium perranate.

    I commend the entire team for their hard work and commitment to excellence. We look forward to continued success as we strive to maintain our position as a leader in the mining and metallurgical industry.

  • Anglo Asian Mining may secure a loan to fulfill its obligations

    Anglo Asian Mining may secure a loan to fulfill its obligations

    Anglo Asian Mining, a renowned player in the gold, silver, and copper mining sector in Azerbaijan, is considering the possibility of securing a loan to meet the recommendations put forth by the international monitoring company Micon. These recommendations are based on the findings of waste monitoring conducted in the village of Seyudlyu, located in the Gedabey district.

    In response to a question posed by a correspondent from Report dispatched to Seyudlyu, Reza Vaziri, the General Director of Anglo-Asian Mining PLC, acknowledged that despite the company’s consistent profitability, recent events have resulted in approximately $19 million in damages. Vaziri emphasized the importance of fulfilling these obligations and mentioned the potential approach to banks for assistance. He expressed confidence in the trust banks place in the company’s creditworthiness when it comes to loan arrangements.

  • The company Polymetal has become a resident of Kazakhstan

    The company Polymetal has become a resident of Kazakhstan

    In a historic move, Polymetal, one of the world’s leading gold mining companies, has officially relocated its operations to Kazakhstan. This decision marks a significant milestone for the country’s stock market, as it is the first instance of a company making such a move. Furthermore, Polymetal has also shifted its primary trading platform from the London Stock Exchange to the Kazakhstan Stock Exchange. The reverberations of this decision within the stock market are examined in a report by a correspondent from “Habar 24.”

    Polymetal has successfully transitioned its jurisdiction and now stands as a proud resident of Kazakhstan. Already, approximately 4,000 shareholders from the United Kingdom, the United States, and Europe have transferred their shares to the AIX Exchange, signaling the beginning of a promising new chapter.

    Vitaly Nesis, the CEO of Polymetal International, expressed his satisfaction with the extensive efforts made over the past nine months. During this period, the company engaged in meetings with over 500 institutional and retail investors. Nesis believes that these interactions played a pivotal role in shifting sentiment. Ultimately, when the final vote on sequential listing and delisting from London took place, more than 90 percent of voting shareholders supported these decisions.

    Within the Astana International Financial Centre (AIFC), there is a shared anticipation that the influx of large investors brought about by Polymetal’s relocation will create fresh opportunities for other Kazakhstani companies.

    Renat Bekturov, the Managing Director of the AIFC, emphasized that Polymetal has not only moved its operations but has also established itself as a resident and a Kazakhstani company within the AIFC. With substantial assets in Kazakhstan, including the two largest gold mining companies in the country, Polymetal’s transition to the jurisdiction of the AIFC also involved transferring its primary trading platform from the London Stock Exchange to AIX, situated within the AIFC. Consequently, global custodians have recognized AIX as a platform and regard Kazakhstan as an attractive investment market.

    Over the next two years, Polymetal aims to enhance its liquidity indicators. Although meticulous work lies ahead, the company has already made strides, with the average daily trading volume for the month reaching approximately $150,000 USD

  • Five Successful Mining Enterprises of Tajikistan

    Five Successful Mining Enterprises of Tajikistan

    Over the past 5 years, about 409 million somoni or $ 82.8 million of investments have been attracted to the mining industry: to whom do they go?

    The mining industry of Tajikistan, which in the Soviet years served as a raw material base for the processing industry of other regions, is today focused on meeting the needs of its own economy.

    The share of mining in the total production of the country is 26%.

    Zarafshon

    1/1

    Zarafshon LLC is owned by the Government of Tajikistan in conjunction with the “Zijin” Mining Company. Tajikistan has a share of 30%, China – 70%. One of the largest enterprises of the country’s gold mining industry, which has an almost completed technological cycle: mining, processing and metallurgy – refining gold to produce finished gold bars.

    Pakrut

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    The new gold mining company in Tajikistan, Pakrut LLC (Vahdat), which is 100% owned by a Chinese company in China Nonferrous Gold Limited, began the extraction of gold from concentrate in 2016.

    Aprelevka

    1/1

    A joint Tajik-Canadian enterprise Aprelevka is located in the north of Tajikistan in the village of Kansai, Sughd region.

    Until 1985, lead-zinc ore was mined here, then the Kairakkum gold mine was organized on the basis of gold deposits, and in 1995, the Aprelevka joint venture was established.

    Adrasman

    1/1

    It was created in 1970 on the basis of the Karamazar mine, later, in 1994 it was renamed the Adrasman mining and processing complex.

    The plant specializes in the mining and processing of silver lead ores to produce lead concentrate.

    Anzob

    1/1

    Anzob Mining Camp (now a joint Tajik-American limited liability company) is located in the Sughd region on the northern slope of the Gissar Range of Central Tajikistan. It specializes in underground mining and processing of ores with the release of mercury-antimony concentrate.

    The design capacity of the enterprise is 700 thousand tons of ore per year with the production of more than 30 thousand tons of mercury-antimony concentrate. Actual ore mining and processing capacity averages 350 thousand tons per year.

    Подробнее: https://asiaplustj.info/ru/node/271604

  • Chaarat Gold Announces Sale of CJSC Kapan

    Chaarat Gold Announces Sale of CJSC Kapan

    In a strategic move that underlines Chaarat Gold’s commitment to optimizing its portfolio, the international gold mining company has reached a definitive agreement with Gold Mining LLC to divest its subsidiary, CJSC Kapan. This subsidiary boasts ownership of the renowned Kapan gold-polymetallic mine, a cornerstone of Chaarat Gold’s operations. The sale, marked by its forward-looking nature, is set to reshape the dynamics of the gold mining landscape and cement Chaarat Gold’s position as a visionary industry leader.

    A Transformative Transaction for a Prosperous Future

    At the heart of this transformative transaction lies the buyer, Gold Mining LLC, which currently oversees the operations of the esteemed Lichkvaz mine located within the Armenian terrain. The Lichkvaz mine has consistently supplied high-quality ore to the Kapan plant, facilitating seamless processing operations. The strategic alignment between CJSC Kapan and the Lichkvaz mine is poised to create synergistic efficiencies, thereby bolstering the potential for enhanced operational performance.

    Monetary Breakdown: $55.4 Million Deal Structure

    The financial contours of this momentous sale are both comprehensive and intricate. The transaction’s total compensation stands at an impressive $55.4 million, strategically divided to optimize value for all parties involved. Out of this sum, a substantial portion of $5 million will be exchanged in cash, manifesting Chaarat Gold’s commitment to immediate liquidity and financial flexibility. A noteworthy component of the compensation involves the assumption of Chaarat Kapan’s intra-group debt, accounting for $50.4 million. This nuanced approach to deal structuring showcases the acumen of both parties involved.

    A Chronicle of Value Creation and Community Empowerment

    Chaarat’s acquisition of the Kapan mine in 2019 heralded a new era of operational excellence and value creation. Over the ensuing four years, Chaarat Gold undertook rigorous measures to augment the mine’s operational efficiency, thereby extending its lifespan. Notably, the company remained undeterred by geopolitical complexities, steadfastly investing in the community and bolstering Environmental, Social, and Governance (ESG) standards.

    The Catalyst: Armenian Dram’s Appreciation

    The commendable progress achieved through years of performance enhancements and financial stewardship found a catalyst in the appreciating Armenian dram. The significant uptick in the currency’s value propelled Chaarat Gold’s decision to explore expansion avenues. The company’s strategic vision encompassed not only the Kapan mine’s value realization but also the broader exploration of growth opportunities.

    Charting New Trajectories: Growth Prospects

    In tandem with the sale of CJSC Kapan, Chaarat Gold sets its sights on new horizons. Among these growth trajectories are the Tulukubash and Kyzyltash mines, which present compelling prospects for further value creation. These ventures symbolize Chaarat Gold’s unwavering commitment to sustained growth and the relentless pursuit of excellence.

    Conclusion: Pioneering Change in the Mining Landscape

    In conclusion, Chaarat Gold’s decision to divest CJSC Kapan in favor of a strategic sale marks a watershed moment in the gold mining industry. The alignment between CJSC Kapan and the Lichkvaz mine is poised to drive operational efficiencies, while the financial deal structure mirrors the company’s nuanced approach to value optimization. Chaarat Gold’s legacy of value creation, community empowerment, and ESG commitment is testament to its industry leadership.

    As the company navigates toward the future, the appreciation of the Armenian dram acts as a compelling catalyst, prompting strategic explorations into new growth avenues. The envisioned expansion into the Tulukubash and Kyzyltash mines is a testament to Chaarat Gold’s unyielding pursuit of excellence, innovation, and transformative change within the mining landscape.

  • German Company Considers Producing Sodium Cyanide in Egypt for Gold Mining

    German Company Considers Producing Sodium Cyanide in Egypt for Gold Mining

    The Egyptian Ministry of Petroleum announced that Germany’s CyPlus is interested in establishing a new production plant for Sodium Cyanide in Egypt that is used as part of the gold mining and extraction process.

    CyPlus is a leading company with advanced technology services and innovative solutions. It ensures safe use of cyanide production, transportation, and disposal.

    The company utilizes new innovative technologies to develop gold extraction and mining procedures.

    The working group will decide on the necessary procedures and find a suitable location in the Eastern Desert for the new production plant and will also work on researching the required technologies and local market needs.

    Sodium cyanide is a colorless sodium salt. It is prepared from sodium amide by heating it with carbon at 800 degrees. It is used in the treatment and extraction of gold.

    A press statement released by the Egyptian Ministry of Petroleum and obtained by Asharq Al-Awsat, said the German company has a “desire to establish a plant for the production of sodium cyanide.”

    Minister of Petroleum and Mineral Resources Tarek El-Molla met with Chairman of CyPlus Stefan Welbers on Wednesday to discuss the investment opportunities available to the company in Egypt.

    During the meeting, Molla stressed the need to localize industries for products complementary to the mining activity, citing the remarkable development in gold mining, the successful gold bid, and the entry of several international companies into the promising field.

    He indicated that the authorities are studying the feasibility of establishing such factories. He added that the ministry is working on a strategic plan to enhance mining activity and establish more factories to boost it, especially those importing products in foreign currency.

    The minister highlighted the importance of developing the industry sustainably and implementing green mining requirements. He stressed the need for increasing mining capabilities while working towards reducing environmentally harmful emissions.

    For his part, Welbers confirmed that the company provides safe and responsible uses of cyanide, starting from production, through transportation and circulation processes, to application and exchange.

    He indicated that CyPlus dedicates its capabilities to providing new solutions that boost productivity and innovatively develop the gold mining process.

    He praised the remarkable developments in the mining field in Egypt, saying it holds promising opportunities for investment.