In the near future Chinese companies plan to sign deals to participate in mining projects in Transbaikalia and in the far East, has informed “news” the head of the Russian Union of gold producers Sergey Kashuba.
China buys shares in gold mining companies in different countries, in order to guarantee delivery of gold at low prices, experts say. “Increasing gold reserves should become one of the key strategies of China whether it’s for state economic security or for the acceleration of the internationalization of the RMB,” said sun Zhaoxu at the Central party newspaper “žemyna Daily”.
According to Sergei kashubians, Russian project for the extraction of gold interested in a number of large Chinese companies like Zijin Mining, China Gold, Zhaojin Mining Industry, Shahdong Gold. Relations with Chinese investors lined up for 3-5 years. Chinese investors plan to obtain a controlling stake in Russian projects. As investors there may be state companies and companies with state participation.
Investors are also encouraged by tax incentives in the Baikal region and the far East. About these benefits on the forum, came representatives of three or four of the largest Chinese companies. The increasing worldwide price of gold, which also reinforces China’s interest in gold mining.
Tax benefits for investors
“If within three years the investor has invested in the far East in implementation of the project of 50 million rubles or 5 years — 500 million rubles, he gets right to the 10-year exemption for payment of income tax and tax on mineral extraction (met)”, ― explained Alexander Galushka.
Within 10 years of receipt of the first profit from the realization of the investment project that the entrepreneur pays a portion of the profit tax enlisted in the Federal budget (2%). The regional part of tax is 0-10% according to the decision of the region. From payment of mineral extraction tax the investor is exempt for 2 years, then every two years, the tax rate is reduced by 20%.
Klyuchevskoe gold Deposit
Particularly interested in Chinese Klyuchevskoe Deposit in Transbaikalia, containing nearly 80 tons of gold. Due to the complex technology of gold mining, the field was frozen more than 10 years ago. For its development requires effective technology available to China Gold, said the analyst of “Finam” Alexey Kalachev.
Currently, Chinese investors completed a deal to buy the Indian company, SUN Gold Ltd 70% interest in the gold Deposit Kliuchevskoi.
Chinese investors decided to divide the Russian market of gold mining, said Kashuba. In particular, one company will be included in the projects for the extraction of gold fields with reserves of up to 50 tons from 50 to 100 tons. He noted that the Chinese are interested in the regions of Russia along the Russian-Chinese border: Transbaikalia, Khabarovsk Krai, Amur oblast, Magadan, Kamchatka.
Benefits of Russia and China
Russian companies due to sanctions are having trouble obtaining loans in the West. In this situation, one solution is to offer investors from China to become co-investors of the project. China has the financial however, they need to invest 100% payback projects. China and Russia have already identified 60 key projects in various sectors that will be supported at the state level. Gold mining falls into this category, said a source to Life.
According to him, the list of these projects and more large gold deposits. For example, natalkinskoe fields developed by the company “Polyus, Suleiman Kerimov (proven reserves of 1 500 tonnes). Listed as another major project — “Sukhoi Log in the Irkutsk region (1,029 tons of gold). Included in the list of other deposits with gold content of up to 300-400 tons.
In the future the number of such projects will only grow, said Kashuba. Beijing ranks first in the world in gold production (490 tons in 2015) and increases its production for 16 years. Its reserves are drying up, and China is looking for gold in other markets. Russia last year produced 293 tons of gold. “The only thing that confuses our business is the high cost Asian loans. Optimally it would be to take cheap money from the West and technology from the East”, ― said Kashuba.
