Russia’s gold industry set for modest production growth

Russia’s gold industry will see modest production growth, supported by a solid project pipeline and improving gold prices. While the country remains dominated by domestic miners as strict regulation of foreign investment prevents new entrants, partnerships will bolster project development.

For instance, Russia’s state-owned Far East Development Fund will reportedly partner with Chinese-owned China National Gold Group to create a USD1.0bn mining fund targeting gold, precious metals and copper projects in Russia.

In January, a joint-venture between state-owned Rostec Corp and Russia’s largest gold mining firm, Polyus Gold, won the bid for the Sukhoi Log gold deposit in Irkutsk. The Russian government expects the deposit, which covers an estimated 28% of the country’s total gold reserves, to yield 2.6-2.9moz of gold per annum with capital expenditures between RUB90-100bn.

China National Gold Group will also develop the Chernogorskoye and Norilsk-1 deposits with domestic gold miner Russian Platinum.

Experts forecast Russia’s gold output to climb steadily, from 8.7moz in 2019 to 11.2moz by 2026.