News

July 02, 2009

A Radical New Plan For The Giant Sukhoi Log Gold Project In Russia Lands On The Desks Of Kremlin Power-Brokers

By John Helmer in Moscow

Russia’s resources tsar, Deputy Prime Minister Igor Sechin, is considering a new plan to award the mining right to Sukhoi Log, one of the largest un-mined gold deposits in the world, to a special-purpose company backed by Russian Technologies, the state metals and minerals conglomerate run by Sechin’s old ally, Sergei Chemezov. Operator and gold miner in the proposal is Lenzoloto. If Sechin approves the plan, it would become independent of controlling shareholder, Polyus Gold.

Chemezov’s group already owns and operates VSMPO-Avisma, the titanium and magnesium monopoly in Russia. His Russpetsstal (“Russian Special Steel”) unit currently operates several plants for the production of special steels and alloys that are used in the aviation and aerospace industries, and is planning to add more. Chemezov is also a development partner in the large un-mined Udokan copper deposit. Although gold is not thought of in Moscow as a strategic mineral for military purposes, a move...