Wednesday, 21st April 2004 (3123 views)

A leading fund manager has claimed Russia's gold sector has huge potential for big mining firms.

According to natural resources fund manager at Merrill Lynch, Richard Davis, the country's gold offers firms low cost production, with many gold producers already keen to invest.

Mr Davis told Forbes: "Over the last five or six years there's been a big reduction in the amount of money these mining companies spend on actually finding reserves.

"Some of them will have to buy ounces in the ground -- that could benefit the Russian gold mining industry. The Russian gold mining industry can only attract more investment as it's a growth sector," he added.

If mining companies did move towards Russia, gold output could increase to over 200 tonnes by 2009, bringing it level to China's current position as fourth largest producer.

Output reached 182 tonnes last year and had increased by approximately 30 per cent over the last five years.

 

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