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Russian gold production continues to grow apace

With Jan-Apr 2009 gold output of 43.28 tonnes, up 37.8% on a year ago, Russian production continues to rise – with the biggest increases coming from Kinross and Peter Hambro Mining.

Posted: Tuesday , 26 May 2009

MOSCOW (Reuters) -

Russian gold output rose by 37.8 percent to 43.28 tonnes in the first four months of this year, from 31.41 tonnes a year ago, due mainly to the launch of new ore processing capacities, the main industry lobby said on Tuesday.

The Russian Gold Industrialists' Union said the Kupol mine, majority owned by Kinross Gold Corp (K.TO: Quote), on the far eastern Chukotka peninsula, and Peter Hambro Mining's (POG.L: Quote) Pioneer mine, in the Amur region, accounted for most of the rise.

Another contributor was the Olympiada mine in the Siberian region of Krasnoyarsk, which is owned by Russia's largest gold producer, Polyus Gold (PLZL.MM: Quote) (PLZLq.L: Quote).

Russia's gold output started rising from last year after five years of steady decline after some of the country's biggest miners raised production. [ID:nLU262708]

Production in the first quarter of this year showed a year-on-year increase of 42 percent to 31.39 tonnes. [ID:nL5956426].

In the first four months of this year, output from mines rose by 45.6 percent to 36.44 tonnes, the union said in a statement.

Output achieved by refining gold from scrap rose by 10.4 percent to 2.10 tonnes and production of gold as a by-product of other metals rose by 6.0 percent to 4.74 tonnes, the lobby said.