Russia's Far East Development Fund aligns with China Gold in $1bn joint venture

By Dale Benton
A Russian state-owned project is set to sign an agreement that will see the formation of a $1bn joint venture to invest in the Chinese mining industry...

A Russian state-owned project is set to sign an agreement that will see the formation of a $1bn joint venture to invest in the Chinese mining industry.

The Far East Development Fund, a state-owned foundation aimed at searching, structuring and implementing projects to significantly attract investments into the Far East, wil work alongside China Gold to invest up to $1bn into the mining sector.

"We and China Gold will create an attractive financial platform that private investors can take part in and make money," Alexey Chekunkov, head of the fund, said in an interview in Danang, Vietnam, where he attended an Asia-Pacific Economic Cooperation business forum. "Our first goal will be to invest in gold, precious metals and copper projects."

Although the details of the agreement have yet to be revealed, it is believed that it will be signed by the end of the year, signalling an initial fund of $500mn in 2018 and then future investments made beyond the end of next year.

Related stories:

Read the latest issue of Mining Global here

Centerra Gold aquires AuRico Metals in C$310mn deal

Sibanye-Stillwater rethinks mine closure following R550mn saving

Australia mining sector shows growing number of mergers and acquisitions

Far East Development and China Gold will each invest $100 million, with a further $300 million from private investors, Chekunkov said.

China National Gold Group Corporation (hereinafter referred to as China Gold) is the only central state-owned enterprise in China’s gold industry under supervision of State-owned Assets Supervision Administration Commission of the State Council.

China Gold takes stock of the present and makes plans for the future. In the period of the 12th Five Year Plan, it accelerates transforming economic growth mode, takes good use of its achievements and improves quality of development, so as to enter Top 500 in the world and become a world-class mining company by the end of the 12th Five Year Plan.

Share

Featured Articles

Laws Thwart US Bid to Match China on Lithium Mining

US bid to increase domestic production of lithium in order to reduce reliance on Chinese supplies of critical mineral frustrated by 'confusing' state laws

Bain: 'Inflation Dampening Mining Leaders' Net Zero Hopes'

Bain & Company’s annual Energy & Natural Resource Executive Survey shows 62% of energy execs say high costs mean net zero goals won't be met by 2060

Focus on: Lithium – ‘White Gold’ Driving the EV Revolution

Because of the move to electric vehicles, the metal lithium is rapidly becoming a vitally important part of world’s bid to move away from fossil fuels

Aluminium Industry Calls for new North America Body

Supply Chain & Operations

Data-Driven ABB Smart Hoisting Solution 'is Safety Boon'

Digital Mining

Deep Sea EV Metals Mining Firm in Greenpeace Clash

Sustainability