16th Dec 2019 14:21
(Alliance News) - Russian gold producer Trans-Siberian Gold PLC said Monday it has signed an agreement with JSC Far East Development Corp, which confirms Trans-Siberian's residency in the Kamchatka Advanced Special Economic Zone.
Far East Development is a Russian state corporation which manages and administers the ASEZs, which were established in 2014 with the aim of encouraging new investments in the east of Russia and aiding economic growth by offering terms to organisation operating in the region.
As a confirmed resident of the zone, Trans-Siberian will benefit from reduced income taxes, metals royalties, property taxes and land taxes for a period of time.
The company has estimated that the benefits of inclusion within the zones can contribute to USD6 million in cost savings over the next seven years.
As part of the agreement, Trans-Siberian will implement several new capital investment projects, including the development of construction of an extension to the Asscha gold mine, known as Vein 25.
In addition for the mine, the company will also invest in a ventilation unit and procure additional mining equipment. In total, Trans-Siberian expects to invest USD21.2 million in total until 2024.
"We are highly appreciative of the support provided by the Regional Government of Kamchatka and our inclusion into ASEZ programme. It is an excellent government initiative that benefits the region as well as multiple additional stakeholders," said Chief Executive Officer Alexander Dorogov.
"We have already completed a large programme of capital investment at the Asacha gold mine over recent years including planned maintenance of the mill, establishment of an underground water pumping station and main infrastructure and the enlarged tailing facilities. However, with the benefits of ASEZ status, we look forward to accelerating the development of Vein 25, a new vein at the Asacha gold mine," Dorogov added.
Shares in Trans-Siberian Gold - which is headquartered in St Neots, UK - were up 3.2% at 64.00 pence on Monday in London.
By Dayo Laniyan; [email protected]
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