 |
|
||
|
|||
|
|||
|
|
||
|
|
|
|
|||||
|
||||||||
|
|
|
Bidding for Sukhoy Log gold deposit heats up
RBC, 29.04.2004, Moscow 11:40:35.A Moscow press leak from the stable of Norilsk Nickel owner Vladimir Potanin suggests that, far from being a done deal, the competition for Sukhoy Log ("Dry Gulch"), Russia's largest unmined gold deposit, is only just beginning to warm up, the Russia Journal reported. The press leak also hints at the possibility that whoever wins the bidding may have to compensate South African mining company JCI, whose right to mine the deposit was corruptly revoked in 1997 by the Russian authorities, in league with JCI's partner at the time, Lenzoloto. At the same time Norilsk Nickel is positioning itself to take shareholding control of South African miner, Gold Fields - a move which will require South government approval - and also attempting to win the Sukhoi Log deposit, which was illegally taken from another SA mining company and its Australian partner in 1997. The first licence to mine Sukhoy Log was held between 1993 and 1997 by Star Mining, an Australian junior; which formed a partnership with JCI of Johannesburg and local Irkutsk region mining association Lenzoloto. With equity finance raised by Star in Australia, and a loan to Star from Standard Bank London, the Australian-managed project spent more than $30 million on feasibility study, drilling, and mine planning at the site. All was lost in 1997, when the federal Minister of Natural Resources at the time, Boris Yatskevich - who was also a board member of Lenzoloto - backed the revocation of the mine licence. He also refused to endorse compensation. A compensation payment is reported to be included in the tender conditions to indemnify costs of development already incurred, by local miner Lenzoloto, which was acquired by Norilsk Nickel last year. Since Lenzoloto originally borrowed from the foreign mining group, and since it was the latter who funded the exploration, planning, and feasibility costs at the mine site, the newly reported condition opens the door for JCI to make a claim on Lenzoloto, and on its owner Norilsk Nickel, if they win the bidding.
|
|||||||||||||||||||||||||||||||||||
