India's Sun Gold, Chinese firm to invest $500 mn in Russian gold mine

In 2016, the sides agreed that Sun Gold would sell a 70% stake in the project, the Kluchevskoye gold deposit, to China National Gold

India's Sun Gold and China National Gold are launching a joint gold mining project in Russia's Siberia region, the two companies said in a joint statement during a Johannesburg summit of BRICS member states.

In 2016, the sides agreed that Sun Gold would sell a 70-per cent stake in the project, the Kluchevskoye gold deposit, to China National Gold, a major global gold producer. The Chinese gold company would, in turn, contribute to its development expertise.

However, the deal was delayed for various reasons, including red tape issues in Russia.

A pre-production investment of up to $500 million is planned, the partners said in their statement, adding that China National Gold is expected to be the project's major shareholder following its final ratification by the Duma, Russia's lower house of parliament.

The Duma ratified the project on Thursday, according to the representative body's public documents.

An open-pit mine is expected to be built at the Kluchevskoye deposit producing 6.5 tonnes of gold annually, the partners said. They did not disclose when the first gold was expected to be produced.