Russian Platinum with Chinese accent

China Gold can join the projects in Taimyr and Kyrgyzstan.
As found by Kommersant, the Chinese state company China Gold is interested in the projects of Russian Platinum Musa Bazhaev in Russia and Kyrgyzstan with investments of up to $ 4.6 billion. Negotiations are still in the preliminary stage, but China Gold has long been studying projects in Russia and agreed to gain control in the Klyuchevskoye gold deposit. Experts believe that the partnership of "Russian Platinum" in Djeru in Kyrgyzstan is more likely to cooperate on the company's projects in Norilsk.

China's largest gold miner, the state-owned China National Gold Group (China Gold), is interested in Musa Bazhaev's Russian platinum projects in Russia and Kyrgyzstan, a source familiar with the situation told Kommersant. In the "Russian Platinum" it was confirmed, specifying that it is premature to talk about specifics. Contact with China Gold yesterday failed.

We are talking about the large polymetallic deposits of Montenegrin and Norilsk-1 in Taimyr and gold ore Djerue (Kirghizia). The reserves of Montenegrin, which are suitable for open mining, are 20.5 million ounces of platinum, palladium, rhodium and gold in the eastern part (underground mining in the western part with resources of 10.4 million ounces) and more than 800,000 tons of copper, nickel, Cobalt. The reserves of the southern part of Norilsk-1 are estimated at more than 90 million ounces of platinum and gold and more than 3.3 million tons of copper, nickel and cobalt. Jeruy's stocks - more than 2.9 million ounces of gold (5.8 grams per tonne), 40% of the co-owner of the Kazakh ERG Alidjan Ibragimov.

"The Chinese are actively investing in production around the world, and in the platinum market of Russia and South Africa - the main players," - explained in the "Russian Platinum." China is the largest importer of non-ferrous metals and platinoids. According to Metal Focus and the World Gold Council, China has the first place in gold production in 2016 (14% of the world's volume, 14.56 million ounces) and consumption, which is twice the production in the PRC, 30.8 million ounces. China is also leading in terms of nickel consumption (about 1 million tons, imports - about 550,000 tons), platinum (3.8 million ounces) and copper (about 11 million tons output at 2 million tons, Norilsk Nickel And ICSG).

In December 2016, "Russian Platinum" and VTB agreed on the development of Norilsk projects and attracting partners (the bank's share may be 20%). Investments were estimated at $ 4 billion, a potential partner was also called the Chinese Fosun (in May 2017, it agreed to repurchase a 15% stake in Russia's largest gold miner, Polyus). Two sources of Kommersant say that Fosun was considering projects of Russian platinum, but "there have been no recent talks".

More active is the work on Dzherei, noted in the "Russian Platinum": until the end of August, the technical development project should be protected in the government of Kirghizia, the GOK is planned to be launched in late 2018, the factory - in 2019. With open works (until 2031), the output will be up to 150 thousand ounces a year. Investments in Jerooy - about $ 600 million. In April, it was reported that the EDB could allocate a loan for $ 200 million for the project, but in the "Russian Platinum" specify that they are also considering VTB's loan. Norilsk projects are looking for a configuration: the processing of all the ore at the Montenegrin GRK or ore from Norilsk-1 at the facilities of Norilsk Nickel, sources say.

China Gold has long been looking at the Russian market. In 2015, she signed an agreement with the "Pole" on gold projects. The head of Polyus Pavel Grachev clarified later: it was primarily about the development of the Natalka deposit in Kolyma, whose reserves, when adjusted, were halved to 16 million ounces. But already in 2016 he told Vedomosti that when China Gold announced its expectations, the negotiations on the project ended, noting that China Gold is a "strategic player who needs control in the capital and in management". And in the autumn it became known that China Gold could get up to 70% in the Kliuchevskoye gold deposit in Transbaikalia (2.64 million ounces, investments up to $ 500 million). Among the Chinese investors in mining in Russia is also the consortium Highland Fund, which bought 13.3% of copper Bystrinsky GOK from Norilsk Nickel for $ 100 million. In Kyrgyzstan, Zijin Mining Group operates, and Highland Gold (the largest shareholder - Roman Abramovich) in 2016 called Investors of China in Unkurtash. Highland Gold yesterday told Kommersant that preliminary talks are under way with Chinese companies.

Director for Metallurgy and Mining Prosperity Capital Management Nikolai Sosnovsky believes that Jerooy for China Gold is an attractive asset, but the expert pays attention to country risks. Partnership for Norilsk assets requires an agreement with Norilsk Nickel, which owns the infrastructure in the region, he says, and the approval of the Russian government. The head of the Union of Gold Miners of the Russian Federation Sergey Kashuba adds: according to his information, China Gold in Kyrgyzstan entered the development of the Kuru-Tegerek (3 million ounces of gold and 370,000 tons of copper).