17 February 2003 00:40
Peter Hambro's Russian venture
Peter Hambro Mining, the Aim traded gold mining company, has formed a joint
venture with two Russian companies to pursue opportunities in eastern Russia.
The Russian companies, which include the region's second largest gold
producer, will contribute two active mines, while Peter Hambro will provide
cash in return for 50 per cent of the venture.
The immediate aim is to participate in the forthcoming auction of the 38 per
cent state-owned stake in the Matrosov mine.
Matrosov, majority owned by the workers, produces 32,000 ounces of gold a
year and owns the licence for the 7.9m ounce Natalka hard rock deposit,
giving the stake an estimated value of between Dollars 10m and Dollars 20m
(Pounds 12.8m).
Peter Hambro, chairman, said he would finance any purchase through cash flow
and existing facilities. He thought Russia's other big gold producers
Norilsk Nikel, Polymetal and probably Alrosa would also try to buy the stake.
He added that Harmony Gold, the first of the big producers to move back into
Russia, may show an interest.
He said: "It is unusual to be able to buy a site with 7m-8m ounces. It
is very exciting, but if we are not successful we would go for other sites.
There are enormous mining opportunities in Russia."
[FTI [The Financial Times]] |
RUSSIA IN FACTS
