Following the meeting between ALROSA CEO Pavel Marinychev and Magadan Region governor Sergey Nosov, parties signed a cooperation agreement for the geological exploration of the Degdekan ore field which would involve investments of 8.3 billion rubles.
The implementation of the project will create up to 1,000 jobs and ensure an increase in tax revenues to the budget of the Magadan Region. Along with this, ALROSA intends to develop social partnerships with the Magadan Region.
As part of the agreement, ALROSA intends to use its accumulated expertise in geological exploration and mining operations to further develop gold mining, which already occupies an important place in the company's portfolio.
"Degdekan is the first project in the history of ALROSA in which gold mining is the main goal. The agreement with the government of the Magadan Region opens up opportunities for us to expand geological exploration and develop this area," Marinychev said.
“We see significant potential in gold mining and intend to use our experience and expertise in geological exploration and mining,” he added.
Once at design capacity, the Degdekan project is estimated to produce 3.3 tonnes of gold (116,400 ounces) per year until 2042.
Theodor Lisovoy, Managing Editor, Rough&Polished
