Polyus and Kinross agree Russia venture

Exploration & Development

Polyus Gold, Russia's largest gold miner, signed on Monday a protocol to develop its large Nezhdaninskoye deposit in far eastern Russia with Canadian miner Kinross Gold Corp.

Polyus and Kinross, owner of the large Kupol deposit in the remote Russian region of Chukotka, signed a deal that could eventually lead to the formation of a joint venture to develop Nezhdaninskoye, agencies reported.

Polyus chief executive, Yevgeny Ivanov, and Kinross chief executive, Tye Burt, signed the protocol.

The Nezhdaninskoye deposit in the eastern republic of Yakutia (Sakha) is estimated to hold more than 500t of recoverable gold.

Polyus, which has long-term plans to triple annual output from around 1.2Moz in 2007, initially planned to start developing the deposit in 2010, but said last year it would revise some projects because of the world economic crisis.

Kinross Gold opened its low-cost Kupol mine on the far eastern Chukotka peninsula last year. This mine alone is likely to propel the company to be Russia's second-largest gold miner after Polyus.

Kupol is one of three new mines that are expected to help boost Kinross's production to as high as 2.5Moz this year.