15:16 GMT +324 March 2017
    Gold deposit development

    Russia's Largest Gold Mine to Be Auctioned on January 26 Starting at $130Mln

    © Sputnik/ Evgeny Yepanchintsev
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    An auction to sell one of the world's and Russia's largest gold deposits will be held on January 26, 2017, with the starting price set at over $130 million, Russian Minister of Natural Resources and Environment Sergei Donskoi said Friday.

    MOSCOW (Sputnik) — Prime Minister Dmitry Medvedev has signed a decree on the Sukhoi Log gold reserve auction in 2017 earlier in the day.

    "The auction will be announced today, it is scheduled for January 26," Donskoi told reporters. "The size of the single payment will amount to 8.55 billion rubles [$133.22 million], it is not planned to be updated at the start of trading."

    The auction will be "for the right to use the subsoil plot of federal importance, including the Sukhoi Log deposit, located on the territory of the Irkutsk Region, for the exploration and mining of gold," the decree signed by Medvedev states.

    The Sukhoi Log is estimated to have reserves of about 64 million oz of gold.


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    Sukhoi Log, gold, Sergei Donskoi, Russia
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    • avatar
      looking for a Russian buyer...
    • avatar
      Can't Russia mine it? Why the ENEMIES that HATE Russia and impose sanctions and restrict movement of diplomat's. And Why to all of them that talk trash of Russia 24/7.
      They say Russian's are STUPID. And feel inflated and exceptional.
    • avatar
      It is clear that some of Putin's close friends already set the scam system in motion. They probably already made a new bunch of overseas companies that will bid for purchase. As that will be rigged in my mind it will be that they will end up with property for little money and then once own that plot of land, they will go to Anglo-American and offer cooperation. As these Putin's friends are good criminals and extortionists they of course have no clue how to run Kebab shop let alone enterprise and therefore they will seek knowledgeable partners which are either AA or Australian gold mining corp. which have vast experience in environment pollution with arsenic which is used heavily in gold extraction process.

      Now that is very unusual that government will hand over such a huge value for a small pocket money without some seriously heavy bribery. If we assume that one ounce of gold is worth $1,200 US than mats is simple 64,000,000 x 1,200 = 76,800,000,000 or in words 76.8 billion US$. Now if the net profit for extraction will be only 10% that would be 7.6 billion of profit, however profit margin for gold is much higher and is according to my friend who is working in gold mining company which is a part of Anglo American the profit margin vary from 40 all the way to 55%. Initial costs are bit higher but later running costs are just joke. However AA as well as other reputable gold mining companies already have all equipment for a start and they do not invest money because if goldmine after test period proves to be much poorer than they do not invest in new equipment in order to maximixe profit.

      I wonder what was idea behind asking 130 million initial price. These international bids are all donne in writing form and in case of corruption someone will secretly open all envelopes and give the offered prices to one particular (oligarch) and he will either equal it or slightly increase price and get the plot of land without paying serious money.

      Russian government should limit sales of shares in max. 100 US$ per person with one share value 1 US$. I bet that at least 10 million Russians would buy these shares for 100US$ each and that would already bring 1 billion US$ to the state mining corporation and with that money they would be able to extract all gold out and all gold would stay in country and all profit would go to the Russian people. Shares would have permanent ownership which means they would not be for sale as each of these shares would bring way more than 20 $ in cash at the end of exploitation.

      Let us Remember that Russia is not a real estate which belongs to government but to the people of Russia and government is only Manager of the real estate and it cannot sell it without prior permission of real owners. Therefore people not just in Russia but all over the world should start to demand return of the country back to them. Country is landlord and all who use or live on it including owners are tenants and have to pay for that privilege of occupying certain plot of land and pay annually for it as a tax and that collected money again belongs not to government but to all people in country and therefore this money can be used only for benefits of whole society. That means the country would seek permission (referendum) for military budget not just confirmation by few corrupt criminals called Lawmakers. That would hit hard oligarchs as they would practically have to return all they stole during illegal process of privatisation. I cannot come to your house and sell your belongings without your explicit consent. If I do that then I would end up in jail and your sold belongings would be confiscated and returned to you with adequate compensation.
    • avatar
      Russia should only sell to a Russian "Owner" !!!
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