PRESS: Russian ministry raises price for Sukhoi Log to 8.6 bln rbl

MOSCOW, Jul 29 (PRIME) – Russia’s Natural Resources and Environment Ministry has raised the initial price for the Sukhoi Log gold deposit auction to 8.6 billion rubles from 5 billion rubles, Vedomosti business daily reported on Friday quoting Minister Sergei Donskoi as saying.

The ministry has prepared a draft ruling on the auction and sent it to the Defense, Industry and Trade, and Economic Development Ministries and to the Federal Security and Federal Antimonopoly Services. According to the draft, the auction is to be held in 2016, and only companies in which Russia owns 25% directly or indirectly will be allowed to partake in it.

Located in the Irkutsk Region in Siberia, the Sukhoi Log is one of the largest undeveloped fields with forecast gold reserves estimated at 1,953 tonnes and silver reserves at 1,541 tonnes. The field’s reserves account for 28% of Russia’s combined gold reserves.

In mid-July, the government ordered the ministries and services to coordinate the draft ruling in three days, but as of late Thursday only Economic Development and Industry and Trade ministries coordinated it, Vedomosti reported quoting a representative of the Natural Resources and Environment Ministry.

The two services and the Defense Ministry did not respond to the business daily’s request.

Previously, gold producers Polyus, Polymetal International, Nordgold, Kinross, and GV Gold, as well as state industrial corporation Rostec, expressed interest in the asset.

(66.1125 rubles – U.S. $1)

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