LIST OF MINERALS AREAS TO BE AUCTIONED IN 2005 APPROVED

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MOSCOW, March 18 (RIA Novosti) - The Russian Natural Resources Ministry and the Economic Development and Trade Ministry have approved the list of minerals areas to be auctioned in 2005, says the former's press communiquй received by RIA Novosti on Friday.

Under this list, 180 areas with raw hydrocarbons, including four on the continental shelf, and 38 with solid minerals will be put up for auction.

It is planned "three months after the adoption of the new wording of the Law on the Mineral Resources" to put up for auction four areas on the shelf of the Barents sea, the fields Sakhalin-3, Magadan-1 and Magadan-2 on the Okhotsk sea.

The Sukhoi Log gold-bearing field is not in the list.

Sukhoi Log lies in the north of the Irkutsk region in Siberia and is the biggest in Eurasia. Its reserves constitute over 1,000 tons of gold.

In October 2004 Natural Resources Minister Yury Trutnev told journalists that the auction for the right to develop Sukhoi Log could be held in the second half of 2005. Later, he spoke of the need preliminarily to prepare a feasibility study of the field.

At the press conference in March, deputy head of the administration of the Irkutsk region Irina Dumova said that the feasibility study was going to be over in the summer of 2005.

The auction for the Udokan copper field in the Chita region, Siberia, will take place in November 2005.

Earlier, it was said that the Udokan auction would be held in March.

Reserves of the Udokan field constitute about 20 million tons of copper, or 58 percent of Russia's potential reserves of copper. The content of copper to be produced by the opencast method is 2.5 percent.

In preliminary estimates, the cost of developing the first stage of the Udokan field (processing volume 15 million tons of ore) is $250 million.

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