TORONTO (Realist English). Canadian gold mining company Kinross Gold Corporation has announced the sale of 100% of its Russian assets to Highland Gold Mining Group, the company said in a statement. The latter is owned owned by Russian billionaire Vladislav Sviblov.
The previously agreed total consideration for the transaction was $680 million, which included a payment of $100 million upon closing, with the remaining $580 million scheduled to be received in annual payments from 2023 through to 2027.
The transaction consideration was adjusted by the parties following review by the recently formed Russian Sub-commission on the Control of Foreign Investments, which approved this transaction for a purchase price not exceeding $340 million. With the approval and completion of the sale, Kinross has divested all of its interests in Russia and has no further obligations or liabilities in the country.
“After the completed divestment of our Russian business, Kinross’ rebalanced portfolio maintains a substantial production outlook anchored by its two tier one assets – Tasiast and Paracatu – as well as a strong portfolio of mines in the Americas, a growing business in Chile, and the large, world-class Great Bear project in Canada.”
“We would like to thank our Russian workforce for their dedication, professionalism and hard work. Their ongoing commitment to safety and the environment, especially during the transition of our business in the country, has been commendable,” said J. Paul Rollinson, Kinross President and CEO.
In Russia, Kinross developed the Kupola (Domes) deposit in the Chukotka Autonomous Okrug.
Previously, the Canadian company developed the Kubaka deposit in the North-Even district of the Magadan region, but in 2008 sold it to Polymetal.
Highland Gold is a gold mining company with assets in Russia and Central Asia. Its activities are concentrated around four main production centers in the Khabarovsk, Kamchatka and Trans-Baikal Territories, as well as the Chukotka Autonomous District. In addition, the company owns assets in Kyrgyzstan. It is one of the ten largest gold miners in Russia.