Report: Russia’s Rostec to bid for Sukhoi Log gold deposit

MOSCOW, Dec 9 (PRIME) -- Russian state industrial corporation Rostec plans to participate in a tender for the Sukhoi Log gold deposit and if it wins, may exchange the right to develop the field for a stake in a large gold producer, Andrei Korobov, a head of Rostec’s investment unit RT-Global Resources, said in an interview to Bloomberg Wednesday.

“We will participate in the tender for Sukhoi Log. We will make an offer to a large number of gold producing companies to exchange the asset for a stake in a large producer at market conditions,” he said.

Gold production is one of the most attractive sectors as there is always demand for gold, he said.

Kirill Chuiko, head of research at financial group BCS, told PRIME that Rostec “is the most probable winner of the tender, as it is a company with state support which also announced an initiative to sell the field.”

The Sukhoi Log is one of the largest non-developed gold fields on the continent with inferred gold reserves of 1,953 tonnes and silver reserves of 1,541 tonnes under B, C1 and C2 categories and non-commercial gold reserves of 799 tonnes. The tender may be announced in 2015 with the initial payment of 5 billion rubles. Russian gold producers Polyus Gold, Polymetal, Nordgold, Kinross and GV Gold were interested in the field.

(69.3026 rubles – U.S. $1)

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