|
Article Excerpt
IN BRIEF
Editor's Choice
*** Prime Minister Vladimir Putin has proposed switching to flat rates on the natural resource extraction tax (NRET) for coal. The NRET currently uses a unified percentage rate, but Putin said this does not take into account the differences in mining and geological conditions of extraction, which make development of many fields unprofitable. He also called for mechanisms for annual indexation of the rates depending on market price movements to be provided. He acknowledged that tax changes might reduce budget revenue, but said the safety of coalminers and the stable development of the coalmining regions definitely is more important.
*** UC RUSAL, the world's largest aluminum and alumina producer, said this week that it has reduced aluminum production 10% in the first half of 2009, and is considering a possible further 5% cut in H2. The decline, and any further, is attributable to a drive to reduce output at the group's least efficient and most environmentally challenged smelters. For the full year, RUSAL expects bauxite extraction to decline by 5.6 million tonnes and alumina production will fall by 3.9 million tonnes. Meanwhile, RUSAL is studying the possibility of optimizing its aluminum production capacities in the European part of the country and the Urals and intends to concentrate on building facilities to produce aluminum in Siberia and will make a decision on resuming construction on the Taishet aluminum smelter in the Irkutsk region in the next two months.
*** MMC Norilsk Nickel announced this week that it expects to post EBITDA of just over $3 billion in 2009 on condition that nickel, copper and PGM prices remain at current levels throughout the second half of the year. Norilsk said previously that it is targeting revenue of $8 billion in 2009 and that EBITDA might amount to $2 billion. The Arctic metals and smelting giant also said it may pay over 20%-25% of first-half earnings as dividends. Norilsk Nickel did not pay a dividend for 2008.
*** Gazprom and several other hydrocarbons companies this week called for duties and quotas on the import of large-diameter pipes to Russia to be cancelled at a preliminary meeting on the development of the metals industry chaired by Deputy Prime Minister Igor Sechin. China and Ukraine are the biggest exporters of large-diameter pipes to Russia and an 8% duty on large-diameter pipe imports from China took effect on June 13. Russia has a special regime for importing large-diameter pipes from Ukraine.
*** Alisher Usmanov's Metalloinvest group is seeking support from the state to the amount of 5 billion rubles or more. The interministerial commission for monitoring the financial and economic condition of backbone enterprises discussed Metalloinvest's request this week, though Metalloinvest declined to comment on the report. A source told Interfax that Metalloinvest has until July 22 to prepare and submit documents for the commission. The most support the state has awarded so far is 20 billion rubles in loan guarantees for vehicle maker GAZ.
PRECIOUS METALS
Polyus Gold to finalize purchase of controlling stake in KazakhGold in Sept
MOSCOW. (Interfax) - Polyus Gold, Russia's leading gold producer, will finalize the purchase of a controlling stock interest in KazakhGold in September 2009, Mikhail Prokhorov, chairman of the Polyus board of directors, told journalists on July 19.
"As you can understand, the purchase of such a company is not a one-day thing since the company is not Russian and is registered on the London exchange. If we're talking about a date for the deal's finalization, it will most likely be September," he said.
Polyus Gold said earlier in materials as part of the KazakhGold transaction that Suleiman Kerimov is the beneficiary of a 36.8812% stake in Polyus, while Prokhorov owns 26.8%.
"Based on the information that Polyus Gold received from the main beneficiary owners of its shares, Prokhorov is the beneficiary of a 26.8% of all issued Polyus Gold shares (including American Depository Receipts), which are mainly owned by Bristaco Holdings Co. Limited. In addition, 5,913,100 shares in Polyus Gold, making up 3.1019% of issued shareholder capital, should be transferred to Prokhorov in early June 2009, which will increase his ownership to 29.9%," the company said.
As of June 19, Prokhorov indirectly owned 3,618,287 shares in Polyus, or a 1.8981% stake. In May, Prokhorov signed agreements canceling various transactions for the sale of 5,913,100 shares in Polyus, or 3.1019% of total capital. These shares are to be returned to Prokhorov in July, resulting in his direct ownership increasing to almost 5%.
Kerimov is the beneficiary of a 36.8812% stake in Polyus Gold. This stake is mainly owned by Wandle Holdings Limited.
PRECIOUS METALS
Onexim controls about 40% in Polyus Gold - Razumov
MOSCOW. (Interfax) - Although Russian tycoon Suleiman Kerimov has been buying up shares in Polyus Gold, Onexim's Mikhail Prokhorov remains the chief beneficiary of Russia's largest gold producer.
Polyus disclosed in early July - in connection with the KazakhGold deal - that Kerimov and Prokhorov owned 36.88% and 26.8% of shares respectively.
But in fact, Onexim controls about 40% of shares in Polyus if other shareholders friendly to the group are included, Onexim General Director Dmitry Razumov told Kommersant in an interview.
"We are confident our positions at the company are strong," Razumov said. He said Onexim knows nothing concerning the desire or willingness of Kerimov's Nafta to boost its stake in Polyus.
The two main shareholders in Polyus have "partnership" relations, Razumov said.
"We are treating Nafta and Mr. Kerimov as strategic partners. Moreover, we were the ones to originally propose that he purchase the stake held by [Interros chief Vladimir] Potanin. As far as I know, we are not at odds in our views of current development, management or how to move Polyus forward," Razumov said.
Polyus has formed up "a substantial resource and production base and is unlikely to acquire other companies in the near term [following completion of the KazakhGold deal]," he said.
Polyus might ultimately merge with a global leader in the industry in the not too distant future, he said. "Strategically we want to make Polyus into a world-class gold mining company. On that score I don't exclude the possibility that Polyus might merge with a major global player. That is a plan for 2009-2010," Razumov said.
PRECIOUS METALS
Polyus Gold posts net profit of 1.4 bln rubles in Q2 due to dividends from subsidiary
MOSCOW. (Interfax) - Polyus Gold, Russia's leading gold producer, boosted net profit under Russian accounting standards (RAS) by 480% to 1.373 billion rubles in the second quarter of 2009 from 237,288 rubles in the first quarter, the company said in a statement.
"The increase in net profit was the result of dividend payments received from [subsidiary] CJSC Polyus for 2008," the statement says.
OJSC Polyus Gold is the management company and does not have any licenses. Subsidiaries controlled by CJSC Polyus handle production.
Polyus Gold ended 2008 with RAS net losses of 3.711 billion rubles compared to net profit of 563.032 million rubles in 2007. The company posted losses of 3.167 billion rubles in the fourth quarter of 2008 versus net profit of 463.309 million rubles in the third quarter. The company said the losses could be attributed to a decline in the value of securities held in trusteeship.
PRECIOUS METALS
Polyus Gold to launch Blagodatnoye Enrichment Plant in July 2010
KRASNOYARSK. (Interfax) - OJSC Polyus Gold plans to launch Blagodatnoye Enrichment Plant in Krasnoyarsk Territory in July 2010, Vladimir Sovmen, the president of CJSC Polyus and head of the holding's Siberian production unit, told Interfax.
He said the project's financing has been kept at 10.2 billion rubles.
He said that the plant's annual design capacity of 6 million tonnes will be implemented in 2011 while the facility will likely process 3 million tonnes of ore in 2010. The project is 60% complete at present.
Polyus commenced the construction of the enrichment plant at the Blagodatnoye gold field in 2007.
According to Polyus, balance reserves at Blagodatnoye field come to 309 tonnes of gold with a concentration of 2.4 grams per tonnes. JORC reserves are put by 10.5 million ounces.
PRECIOUS METALS
Peter Hambro boosts gold production 54% in H1
MOSCOW. (Interfax) - UK-based Peter Hambro (PHM), which mines gold in Russia, boosted production 54% in the first half of 2009 year-on-year to 222,600 oz, the company said in a statement.
"Pioneer deposit's first half gold production of 118,100 oz (compared with 38,800 oz in H1 2008) reinforces the Group's confidence in delivering its full year production target of approximately 500,000 oz," the statement says.
"Pokrovskiy deposit's first half gold production was 91,700 oz (compared with 92,100 oz in H1 2008), in line with the Group's forecasts," it says. "PHM's joint ventures and alluvial operations contributed a further c.12,800 oz (compared with c.13,700 oz in H1 2008) to total production for the first half."
"Historically, production during the first half of the year is lower than the second half due to more significant contribution from alluvial and heap-leach operations in the second half. Production in H2 2009 will be additionally boosted by the commissioning of the second processing line at Pioneer," it says.
PHM sold 210,000 oz of gold in the first half of 2009 (versus 118,800 oz in the first half last year). The average gold sales price rose about 2% to $917/oz compared with the same period last year.
"In our iron ore business, the Olekma processing plant is on track for commissioning at the end of 2009 and we are pleased to see some signs of recovery in the iron ore market," board chairman Peter Hambro is quoted in the press release as saying.
At the end of 2009 PHM once gain merged with Aricom, which is developing iron ore and ilmenite deposits in the Far East. The merger of the two companies has created a mining giant in the Far East with gold and iron ore assets whose pro forma market capitalization is about $1.15 billion.
PRECIOUS METALS
Yuzhuralzoloto reduces gold production 7.5% in H1
CHELYABINSK. (Interfax) - The Yuzhuralzoloto Group of Companies (UGC), a gold producer from Russia's Chelyabinsk region, reduced gold production 7.5% to 73,500 troy ounces in the first half of 2009 compared to the same period of 2008, the company said in a statement.
The company reduced gold production in the Chelyabinsk region 1.1% to 55,800 ounces in the period, at the Priisk Drazhny field - 14.7% to 7,000 ounces and at the Kommunarovsky mine - 0.9% to 10,700 ounces.
Yuzhuralzoloto boosted gold production 6.5% to 169,200 troy ounces (5.261 tonnes) in 2008.
OJSC Yuzhuralzoloto is the flagship enterprise of the Yuzhuralzoloto Group of Companies (UGC), based...
|
