BRICS agree on development of Russia’s Klyuchevskoye gold field

GOA, India, Oct 17 (PRIME) -- All five BRICS countries – Brazil, Russia, India, China and South Africa – have signed a memorandum of understanding on joint development of the Klyuchevskoye gold ore field Russia’s Zabaikalsky Region, India’s SUN Gold Ltd said in a statement on October 16.

The agreement was signed by SUN Gold, China National Gold Group, Russia’s Far East Development Fund, Trans AFRICA Capital, and Brazilian investor Antonio Moraes Neto. The joint venture will be aimed at making a large open-pit mine at the field with annual production of 12 million tonnes of ore and more than 6.5 million tonnes of gold ore. Investments are expected at U.S. $400–500 million.

The parties are to receive approval of corresponding Russian and Chinese authorities before creation of the joint venture, the company said.

In August, Russia’s Federal Antimonopoly Service said China National Gold is about to buy a 70% stake in the Klyuchevskoye gold field from SUN Gold.

Reserves of the field were estimated at 47.8 tonnes under the A, B, and C1 categories and at 26.6 tonnes under the C2 category. The development of the field was suspended more than 10 years ago.

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