On Sunday, it was announced that a Memorandum of Understanding was signed by the prominent investors namely: SUN Gold Limited ("SUN Gold"), China National Gold Group Corporation ("China National Gold" or "CG"), the Russian Sovereign Investment Fund, "Far East and Baikal Region Development Fund (FEDF), and partners from Brazil and South Africa. They nod it as BRICS Investment Project ("BRICS Gold MOU"). The representatives were consist of all five BRICS countries.
The agreement was for its purpose of developing the Kluchevskoye gold deposit located in the Chita region of Russia in Eastern Siberia. The wide availability of the minerals in the form of abundant rich reserves made it very conducive for the growth and development of the mining sector.
Representatives of all five BRICS countries are parties to this BRICS Gold MoU, Nand Khemka, Chairman of the Indian Khemka family owned SUN Group, Tong Junhu representing China National Gold, Alexey Chekunkov representing the Russian Far East and Baikal Region Development Fund (FEDF), Ivor Ichikowitz from South Africa's Trans AFRICA Capital, and investor Antonio de Moraes from Brazil according to the statement.
In the mining sector, the project said to be the first BRICS investment project.
Completed by Changchun Gold Design Institute, the proposed joint venture aims to develop the Kluchevskoye gold deposit into a significant open pit mine and heap leach operation with an expected production rate of 12 million tonnes of ore per year and gold doré production of over 6.5 tonnes per annum. The pre-production investment is expected to be $400-500 million. This was according to the feasibility study of Changchun.
While the FEDF will be an important shareholder in the joint company, Sun Group has considerable long-term expertise working in Russia. Both acting within its mandate, to help support the project's growth, with a particular focus on gold and copper mining opportunities in the Russian Far East.
Join the Conversation