World Economy

Russia to Sell Untapped Gold Deposit

Russia to Sell Untapped  Gold Deposit Russia to Sell Untapped  Gold Deposit

Russia is expected to sell discounted rights to one of the world’s largest untapped gold deposits this week to a joint venture of miner Polyus and a state conglomerate, industry sources and analysts said, after sanctions and restrictions discouraged other bidders, Reuters reported. The starting price at Thursday’s auction of the Sukhoi Log deposit is $144 million, valuing gold there at $2 per ounce, around 10 times cheaper than deposits of a similar size elsewhere in the world, according to one analyst. The Russian government, after 20 years of promises to sell the deposit, hopes the start of production will generate much-needed tax revenues and jobs. Moscow has also come under pressure from a two-year lobbying campaign by shareholders in the joint venture of Polyus and state-run Rostec, according to an industry source, who spoke on condition of anonymity. As part of a policy of keeping strategic resources in Russian hands, the government limited access of foreign investors to the auction, ordering that 25% of any bidder should be owned by state-controlled firms.


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