GV Gold rejects power line project, 638 mln rbl state subsidies

YAKUTSK, Jun 22 (PRIME) -- Russian gold producer GV Gold has rejected construction of a 90-kilometer 35-kilovolt Nera–Olchan–ZIF power transmission line, which encompassed a 638 million ruble state subsidy, a company representative told PRIME on Monday.

The subsidy should have been allocated in 2021, but the government reduced the maximum amount of state subsidies for GV Gold for construction of the Tarynsky GOK mining and ore-enrichment plant’s power infrastructure to 339.8 million rubles from 977.8 million rubles. The company already used the money to build a 9-kilometer 35-kilovolt power transmission line and a 35/6-kilovolt ZIF substation.

“The investment agreement on provision of a subsidy for development of the Tarynsky GOK’s power infrastructure was reduced on request of GV Gold. The company decided to reject the second part of the subsidy as Magadanenergo had not provided guarantees that capacity of the Tarynsky GOK’s power supply will rise to 12 megawatts if the new power line is launched,” the representative said.

The Tarynsky GOK was launched at the Drazhnoye gold field in September 2017. Its production capacity is 700,000 tonnes of ore.

(69.5725 rubles – U.S. $1)

End %%md/jst%%