3rd Jan 2020 10:33
(Alliance News) - Trans-Siberian Gold PLC on Friday said it has signed an energy subsidy deal for electricity in 2020 at its Asacha gold mine in the Russian far east.
Shares in the miner were up 6.5% at 88.40 pence in London in morning trading.
Trans-Siberian has inked a new agreement with Kamchatskenergo, the main electrical power provider in Kamchatka, under which Kamchatskenergo will supply electricity at a RUR4.75 per kilowatt hour reduced tariff in 2020, equivalent to approximately USD0.077 per kilowatt hour.
This deal means Trans-Siberian can keep its reduced tariff, though the rate is slightly higher than its RUR4.69 per kilowatt hour tariff in 2019.
These electricity subsidies are intended to support investment in the far eastern peninsula and support regional economic growth.
Chief Executive Alexander Dorogov said: "We are pleased that Trans-Siberian Gold will benefit from the continued support of our local energy provider in 2020, significantly reducing our energy costs as we operate at the lower levels of the Asacha gold mine. Lower energy costs materially reduce the financial burden for companies operating in the far east of Russia, and these regional economic growth incentives reaffirm the attractiveness of the region for investment."
By Anna Farley; [email protected]
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