The Ministry of natural resources plans to stimulate the beginners of private companies in exploration of gold deposits
Photo: TASS/Sergei Savostyanov
The Minister of natural resources Sergey Donskoy told “Izvestia” about the plans of the state for the development and support of the gold mining industry, in particular about the possibility of tax benefits and creation of venture capital funds to increase exploration work (IRT) for gold in Russia. Investment beginners of private companies in exploration now account for about 10-15% of the total, that is about 2.5 billion rubles a year, whereas in other countries, primarily in Canada, the figure may reach 65%, the Minister said.
— Now we analyze the canadian experience to use similar tools — said Donskoy.
He noted that for stable operation of the industry the volume of reproduction of reserves of gold annually should not be less than simple reproduction, that is not less than volume of production — about 280-300 tons per year.
We provide this reproduction. Moreover, due to the calculation of reserves and new discoveries in 2006 and from 2008 to 2011 we have increased our reserves significantly more than mined. In 2015 at the level of production of around 280 t we increment 430 tons, — said don.
Every year the government spends on the reproduction of about 3.8 billion rubles, and the company — not less than 18 billion roubles, have informed “news” the Minister.
In 2014 in Russia the mechanism of issuing licences to companies for application principle, that is, without competition. Donskoy said that this mechanism helps to attract investment for start-up companies in the industry. Under the terms of such licenses issued during the past two years, companies invest in search of work in gold, at least 18 billion rubles in five years, the Minister said. However, according to this principle, companies are sites on which no mineral resources in the conditions of high business risk.
Russian miners are interested in the search fields forces beginners exploration companies, then they could sell or develop the plots was found. However, companies are skeptical about the creation of venture funds for geological exploration in Russia, because they do not see potential investors willing to invest at high risk.
— Prospects of development unitarnogo movement in the Russian context is, they are significant in spite of the imperfection of state regulation. But they are somewhat different plane than traditional unitarnogo movement in the Western countries, — have informed “news” the General Director of one of the largest Russian manufacturers of precious metals — “Polymetal” Vitaly Nesis.
According to him, the Chinese investors will not Finance in new projects, as only interested in the control of major assets. Nesis also called the system of state regulation in Russia is not ready for such projects, so the company itself plans to support search of young geologists.
Nesis notes that the optimal strategy for a startup is to turn of exploration results in additional raw material base of existing enterprise and that “Polymetal” is ready to cooperate. From young companies “Polymetal” want to get a geological idea, the footage, the plan of exploration and the willingness to work hard. For its part offers assistance in the financing of the project, interaction with government agencies, second opinions, and organizational assistance.
According to analysts, the main problem remains the right of the company to a large Deposit in the property without auction, in case of its opening the company.
The problem is that the government chooses sites for exploration. In addition, the opening of the field implies the subsequent competition, for which companies discoverers will have to fight for the license area with other applicants, said Director of corporate ratings ACRA Maxim Hudalov.
In addition, the major gold miners fear the appearance of minor players affiliated with the local authorities, who will record small opening in promising areas, then to require the companies to redeem the prize of their areas, said hudlow. He explains that in Canada, the company acquires subsurface and already found it enters her property, so venture capital investments in exploration have a high chance to pay off in case of success of geological exploration.
— In Russia it doesn’t make sense, because if a strategic Deposit must be put up for auction, where the risk of losing the invested in the exploration money for the small players is great. The right of the discoverer in Russia is valid, but only for small objects, which may not always compensate for the effort, believes Hudalov.
Promsvyazbank analyst Igor Nuzhdin marks another problem, which is that most of the potential new fields are in areas with weak infrastructure, so it requires serious investment, which have the risk did not pay off.