11 June 2004 23:46
Polyus will not consolidate Lenzoloto assets
MOSCOW. June 11 (Interfax) - The Polyus gold mining company, which manages Norilsk Nickel Mining and Metallurgical
Company's gold assets, is not planning to consolidate Lenzoloto assets to form a single gold production company,
Polyus President Yevgeny Ivanov told Interfax.
Lenzoloto will remain a holding company and a production company at the same time, he said.
"We are not planning to consolidate placer deposits in principle, as there are now nine different production
companies holding licenses for the deposits and they are organized on the principle of artels. We consider this the most
efficient form for placer deposits," Ivanov said.
Polyus will manage the companies through the establishment of targets and budget confirmation - "everything that
a board of directors needs to do. And, we will, of course, help them with centralized seasonal financing, agreements
with refining plants and centralized material and technical supplies in order to achieve some impact from scale,"
he said.
The company will aim to increase its stake in Lenzoloto, but this is no longer that vital, Ivanov said.
Polyus plans to carry out an additional issue of Matrosov Gold Mine shares, from which the company will receive $65
million and Polyus may increase its stake to almost 90%. Matrosov Gold Mine shareholders will discuss the issue at their
AGM on June 30.
Polyus consists of the former Polyus, which holds the license to the Olimpiadinsk gold field, 50.48% of Lenzoloto and
57.544% of Matrosov Gold Mine. The three companies produce about 36 tonnes of gold a year, of which 25 to 26 tonnes is
produced by Polyus. [RU ASIA EUROPE EEU EMRG CORA GDM GOL STX ISU] me
[Interfax] |
RUSSIA IN FACTS
