The Russian Ministry of Industry and Trade have announced that Chinese and Indian companies are investing millions of dollars in the Klyuchevskoye Gold Depots. China National Gold Company (CNGC) and JSC West Keys signed contract documents green-lighting the implementation of the Klyuchevskoye gold deposit development project. China National Gold will invest about US$420 million in the development of the Klyuchevskoye gold deposit in Russia; while another US$65 million will be invested by India’s SUN Gold. The Klyuchevskoye mine production volume is expected to be about 6.5 metric tons of gold per year.
In the deal, CNGC acquires 70 percent of the shares of JSC “Western-Klyuchi mine” from the private Indian investment SUN Group, which operates in India, Russia, CIS, Asian countries, and on the African continent, and which owns the license for the development of the Klyuchevsky gold deposit.
Denis Manturov, the Russian Industry and Trade Minister stated that “An annual output of about 6.5 metric tons of gold per year will give a powerful impetus to the development of the economy of the Zabaikalsky Territory and will increase the total extraction of precious metals in the region by 40 percent by 2020.” Zabaikalsky lies to the south of Lake Baikal just north of the Mongolian border.
India and China are the world’s largest consumers of gold, while China and Russia have been stockpiling gold bullion now for some time. Both are reducing their investments in US treasuries and looking to partially revert to a global asset-based rather than debt-based global finance system.
Chris Devonshire-Ellis of Dezan Shira & Associates comments: “Local wealth created in Zabaikalsky may well impact favorably in Ulaan Baatar, the capital of Mongolia. It remains the wealthiest regional city and the only one with outlets for premium brands such as Gucci, Louis Vuitton, Prada, and so on. Residents of Russian Siberia often shop there as it is far closer to cities such as Irkutsk, Chita, and Ulan-Ude than Moscow. This investment will also impact on the production of finished jewelry designs at the Eurasian Diamond Center in Vladivostok.”
Dezan Shira & Associates provide professional services to international companies in Asia, including corporate formation and related services. Please contact us at firstname.lastname@example.org or visit us at www.dezshira.com
Dezan Shira & Associates´ Russian investment brochure offers an overview of the services provided by the firm – both foreign investment into Russia and Russian investment into Asia. It is Dezan Shira´s mission to guide investors through Russia´s complex regulatory environment and assist with all aspects of establishing, maintaining and growing business operations in the…