14th Jul 2021 13:52
(Alliance News) - Petropavlovsk PLC on Wednesday said a company in which it holds a substantial stake was given a small fine by the Russian government after facing legal action over registration of a hazardous mine.
The FTSE 250-listed gold miner owns a 31% stake in IRC Ltd, an industrial commodities producer listed on the Hong Kong Stock Exchange.
In early June, IRC said its wholly owned subsidiary, Kimkano-Sutarsky Mining & Beneficiation Plant LLC, was facing proceeding initiated by the Russian Federal Service for Environmental, Technological & Nuclear Supervision.
The base metals mine has been fined USD3,000, or RUB200,000, after failing to register as a "hazardous facility".
The Russian supervisory body will allow Kimkano-Sutarsky to remain open and has not imposed changes on the mine.
However, it has ordered that the mine address the conditions which led to the non-registration and report back to the government body within one month.
Petropavlovsk acts as guarantor of two loan facilities with USD204 million outstanding for Kimkano-Sutarsky.
IRC shares rose 5.4% on Wednesday to HKD0.30 in Hong Kong, giving it a market capitalisation of HKD2.05 billion. That makes Petropavlovsk's stake worth around HKD637.6 million, equivalent to GBP59.2 million.
Shares in Petropavlovsk were trading up 0.8% at 23.02 pence each in London on Wednesday morning.
By Scarlett Butler; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
POG.L