Starting bid set at $10 million for Russian jewel...
Russia's Economic Development and Trade Ministry has proposed that the starting price for the Sukhoi Log gold deposit auction be set at U.S. $10 million. Further, the Economic Development and Trade Ministry and Natural Resources Ministry have agreed that the license for the development of Sukhoi Log should be awarded at an auction.
The government has so far been undecided whether the licensee will be determined at a tender or at an auction. Regardless, the sell off is expected to take place in the first part of the third quarter of the year, as the law requires a six-month lag between announcing and holding such an auction.
Sukhoi Log is the world's largest gold field, with estimated reserves of 1,000 to 1,200 tonnes of gold. The gold content is around 2.7 grams per tonne of ore. Sukhoi Log ores also contain platinum, palladium and rhodium.
Among the companies expected to bid in the auction are Russia's largest gold producer Polyus, owned by metal giant Norilsk Nickel, Russia's major gold and silver mining holding Polimetall, international Highland Gold Mining Ltd and Russia's largest aluminum producer Russian Aluminum (RusAl).
Other interested companies are Russia's Lenzoloto, Canada's Barrick Gold and Placer Dome, U.K.'s Fleming Family & Partners and English-Australian Rio Tinto.
