Friday, 8th April 2005 (2816 views)

Norilsk Nickel's gold unit has announced plans to spend over $2 billion on gold projects.

Polyus is looking to invest $2.3 billion in various projects over the next five years, since Russia's gold industry is booming.

In addition, Reuters quoted company head, Yevgeny Ivanov, as saying the firm wants to raise direct gold exports in 2006 by around 15 tonnes compared to this year.

Mr Ivanov said that the company will spend at least $140 million on exploring for new gold deposits in Russia.

Polyus produced around 34 tonnes of gold last year and analysts have claimed they are not surprised by the investment announcement.

The gold producer's earnings before interests, taxes, amortisation and depreciation stood at $199 million last year, up 50 per cent from the year before.

Norilsk Nickel is a mining giant in Russia, an area that has some of the world's biggest untapped gold fields.

 

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