Polyus Gold-China Gold Group Corp talks over Natalka Russia deposits

Russia’s largest gold producer Polyus Gold said on Friday its talks with China National Gold Group Corp. over the Natalka deposit in Russia’s Far East were up in the air.

“There is no active work with China National Gold Group now. The Chinese want control which we are not prepared to give away. We were discussing a stake of up to 25 percent … Now it’s all up in the air,” Chief Executive Pavel Grachev told Reuters.

He said production at Natalka would start in 2017.

Grachev also confirmed plans by Polyus to produce 1.765 million troy ounces in 2016, adding that the company’s budget for this year assumed a gold price of $1.050 per ounce transmits Reuters.

Polyus Zoloto, the largest gold producer in Russia, has planned to expand production capacity and increase gold production at its factories in Krasnoyarsk. The agreement was signed by the company’s CEO Pavel Grachev and the Krasnoyarsk region’s Governor Viktor Tolokonsky, transmits rusmininfo.com