Gold corporation, ALROSA, pumps 8.3 billion into gold excavation projects in Magadan region
In a significant move, diamond mining company ALROSA is venturing into gold mining with a major investment in the Magadan region. The company, known for its expertise in geological exploration and mining, has signed an agreement to expand gold exploration in the region.
The agreement, signed during the Eastern Economic Forum, marks the first time in ALROSA's history that gold mining is the main goal. The project, aimed at developing the Degdekansky ore field, is expected to be a primary focus for ALROSA.
The Degdekansky deposit, which is expected to be exhausted by 2042, will be the site of the initial exploration. However, ALROSA also plans to expand geological exploration for gold in areas outside the deposit. The specific locations within the Magadan region have not been specified.
The Magadan region government is providing support for the project, recognising the potential it holds for the region's economy. The investment of 8.3 billion rubles will be used for geological exploration and potential mining operations.
The project's annual gold mining volume at full capacity is estimated to be 3.3 tons. This shift in mining priorities reflects ALROSA's growing interest in gold mining, a sector they see as having significant potential.
Pavel Marynich, head of ALROSA, and Sergei Nosov, Governor of the Magadan region, signed the cooperation agreement. The exact timeline for expanding geological exploration in the Magadan region has not been disclosed. Nor have the details of the project's potential mining operations been revealed.
The project aims to develop the gold resources in the Magadan region, contributing to its economic growth and development. This move by ALROSA is expected to open up new opportunities for the region and the company alike.
Meanwhile, another company, Polymetal, is planning to explore gold deposits in the Magadan region with an investment volume of 8.3 billion rubles. The specifics of their project are yet to be detailed.
This development underscores the growing interest in the Magadan region's mineral resources and the potential for sustainable economic growth through responsible mining practices.
