Russia is becoming the world´s largest gold producing country
The country is already the largest producer of platinum.
Russia plans to become one of the world's largest producers of gold and platinum group metals within the next decade by starting the development of the Sukhoi Log and Fedorova Tundra projects - two of the largest resource-rich regions in the country in terms of gold and platinum group metal reserves, respectively according to the latest statements from senior government officials and analysts. With regard to gold, particular attention will be paid to the development of Sukhoi Log, the world's largest undeveloped greenfield gold project, located in the Irkutsk region of Russia. So far, the development of the field has only progressed slowly, but this could change. Sukhoi Log is being developed by Polyus, Russia's largest gold miner. The Russian federal government has high hopes for the development of Sukhoi Log, as it has calculated that the project could bring up to RUB 470 billion (US $ 6 billion) in revenue to the state budget by 2039. According to Alexei Bezprozvannykh, the deputy head of Russia's Ministry of Industry and Trade, the mine could produce annual output of around 70 tons, while the whole project could create up to 2,500 new jobs in the Russian mining sector. Sukhoi Log will be the largest operating gold field in Russia by 2026. As part of the preparations for the project, the airport in the city of Bodaibo (Irkutsk region) is being reconstructed, the railway infrastructure is being expanded and new roads are being built. Sukhoi Log reserves are estimated at 40 million ounces of gold contained in 540 million tons. As part of the plans, Polyus will build the mine and processing facility with a capacity of 33.2 million tons of ore per year between 2022 and 2026. The total volume of investments in the project will reach approximately US $ 3.3 billion. The same plans exist for Fedorova Tundra, the largest platinoid field in Europe, located in the Murmansk region (northern Russia). Investments in the project will reach RUB 60 billion (US $ 825 million) in the initial phase. The development of the project will enable the production of approximately 250,000 tons of concentrate and more than 8 tons of end products - platinoids, mainly palladium, platinum and rhodium - per year. The total reserves of the field are estimated at 350 tons. The project, which is located in the central part of the Kola Peninsula in the area of Lake Inchyavr, currently has the status of the largest PGM deposit in Europe. It was discovered in 1935, although its reserves were not officially assessed until the early 2000s. Development will take more than 25 years. The direct implementation of the project is expected to be carried out by the company JSC Fedorovo Resources. So far, the Russian federal government, together with the authorities of the Murmansk region, has already promised to provide the investor with all the necessary support. According to Olga Kuznetsova, deputy governor of the Murmansk region, the Russian government has decided to allocate around RUB 6 billion for the construction of the necessary infrastructure, as the field is extremely remote. The development of the field was originally planned with the participation of Barrick Gold. In 2001 he even founded ZAO Fedorovo Resorses and acquired a license to develop the field. 167 exploration wells had been drilled by 2005. The proven value of the palladium and platinum reserves was estimated at US $ 27 billion, the start of mining was initially planned for 2009. At that time, the company planned to build two open pit mines with a total productivity of at least 12 million tons of ore per year. Construction of a mining and processing plant was planned to start in 2010. However, the global financial crisis in 2008 forced Barrick Gold to rethink plans and suspend the development of Fedorova Tundra. Since then the project has stopped. In spring 2020, the rights to develop Fedorova Tundra were acquired by a Russian consortium of companies with the participation of the local state-owned company Rostec. The start of dismantling is now planned for 2027. By then, two opencast mines and a mining and processing complex with a capacity of 15-16 million tons are to be built. The project will create more than 1,200 new jobs.