Russian Fund Plans a $1 Billion Mining Venture With China Gold
Russia’s state-owned Far East Development Fund is in talks to create a $1 billion joint venture to invest in the country’s mining industry with China National Gold Group, a government controlled producer of the precious metal.
“We and China Gold will create an attractive financial platform that private investors can take part in and make money,” Alexey Chekunkov, head of the fund, said in an interview in Danang, Vietnam, where he attended an Asia-Pacific Economic Cooperation business forum. “Our first goal will be to invest in gold, precious metals and copper projects.”
The parties may sign an agreement to create the mining fund by the end of the year, he said. The fund will begin with about $500 million before expanding and may make its first investment in 2018. Far East Development and China Gold will each invest $100 million, with a further $300 million from private investors, Chekunkov said.
Chinese investors’ interest in opportunities in Russian metals and mining has grown this year. Russian billionaire Suleiman Kerimov’s family has agreed to sell 10 percent of Polyus PJSC, the nation’s biggest gold miner, to a group led by China’s Fosun International Ltd. for almost $900 million. The deal is expected to be closed next year. Billionaire Oleg Deripaska also sold a $500 million stake in his En+ Group Plc to China’s AnAn Group.
Calls to China Gold’s Beijing headquarters weren’t answered out of office hours and an emailed request for comment went unanswered.
Source: bloomberg.com
Latest Posts
- Eurasian Resources Group highly commends the publication of the Critical Raw Materials Act
- Rio Tinto has spent more than a million euros on land in Serbia at the proposed site of a lithium mine that was eventually cancelled a year ago
- A new grievance mechanism for Chinese overseas mining needs to be free to use
- Europe revives mining to reduce dependence on the import of key raw materials, supply from Serbia as competitive choice
- Europe, Mining key minerals without destroying nature
Popular Post
- A new grievance mechanism for Chinese overseas mining needs to be free to use
- Rio Tinto has spent more than a million euros on land in Serbia at the proposed site of a lithium mine that was eventually cancelled a year ago
- Eurasian Resources Group highly commends the publication of the Critical Raw Materials Act
- How valuable is Kosovo’s mineral wealth?
- Canadian mining companies in Europe & ISDS
- FinnAust Mining expands copper-gold-zinc licenses in Finland
- What Are The Major Natural Resources Of Macedonia?
- Europe revives mining to reduce dependence on the import of key raw materials, supply from Serbia as competitive choice
- Investment in Czech lithium project approved by European Metals shareholders
- Vimetco NV Aluminium Romania Alro reputation challenged with electricity court case