Polyus Gold
Encyclopedia
Polyus Gold is a Russia
n mining
and metallurgy
company primarily concerned with the production of gold
. Polyus is the largest gold producer in Russia. Polyus is controlled by Russian businessman Mikhail Prokhorov
's ONEXIM Group conglomerate and Suleiman Kerimov.
In 1990 Polyus was restructured as a closed joint stock company, then went public. It is part of the Interros
holding. The company's stock is traded on the RTS
and MICEX exchanges in Russia and on New York's OTC
stock exchange
, as well as on the London Stock Exchange
as ADRs
. The company was worth about nine billion dollars by the end of 2006.
and began working the Olympiad gold field. In 1994 the company obtained the mining license to operate the Olympiada mine. Two years later smelting
operations began.
Lenzoloto, located in the Bodaybo
region, was formed in 1921 by the nationalization of over 400 extant gold producers in Siberia
. In 2003, Lenzoloto joined Polyus group.
One year after the discovery of gold in Natalka, the Matrosov Mine was founded. In 2004, after joining the Polyus Group, the mine's resources were reappraised and a new open-pit mine was planned upon. The company estimates that Matrosov will become the largest gold field in Russia by 2010.
Polyus operates the following gold mining facilities:
All those assets have been consolidated by MMC Norilsk Nickel
and spun off in 2005 as a separate company still controlled by Interros
.
Gold production in 2005 was 33.5 tons, or about one million ounces. The company holds 25.1 million ounces of gold in proven and probable reserves. The company estimates that it has 76.8 million ounces of gold resources.
The company's website states that "producing a ton of gold creates 1000 jobs."
from the founders, the Assaubayev family. Disputes followed, with allegations that the Assaubayevs had misled Polyus as to the financial state of Kazakhgold. Polyus subsequently sold its stake back to the original owners and dropped its legal action, after which its share price soared.
Polyus prefers not to deal with Lenzoloto minorities.
After Polyus bought 62% of Lenzoloto shares in 2006, Polyus sold Lenzoloto assets to an affiliated company at a low price. With new owner Lenzoloto earnings fell from 500 ml. rubles (19 ml. USD) in 2006 to near zero, and Lenzoloto market capitalization decreased by 20 times. Lenzoloto minorities sent letters to Polyus in 2007 asking for making an offer to Lenzoloto minorities, but till present they were unanswered.
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
and metallurgy
Metallurgy
Metallurgy is a domain of materials science that studies the physical and chemical behavior of metallic elements, their intermetallic compounds, and their mixtures, which are called alloys. It is also the technology of metals: the way in which science is applied to their practical use...
company primarily concerned with the production of gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
. Polyus is the largest gold producer in Russia. Polyus is controlled by Russian businessman Mikhail Prokhorov
Mikhail Prokhorov
Mikhail Dmitrievitch Prokhorov is a Russian billionaire entrepreneur and owner of the American basketball team, the New Jersey Nets. After graduating from the Moscow Finance Institute he made his name in the financial sector and went on to become one of Russia's leading industrialists in the...
's ONEXIM Group conglomerate and Suleiman Kerimov.
In 1990 Polyus was restructured as a closed joint stock company, then went public. It is part of the Interros
Interros
Interros is a Russian conglomerate controlled by Russian oligarch Vladimir Potanin with large stakes in mining, metals, energy, finance, retail, real estate and other sectors...
holding. The company's stock is traded on the RTS
Russian Trading System
The Russian Trading System is a stock market established in 1995 in Moscow, consolidating various regional trading floors into one exchange. Originally RTS was modelled on NASDAQ's trading and settlement software; in 1998 the exchange went on line with its own in-house system...
and MICEX exchanges in Russia and on New York's OTC
OTC
OTC may refer to:* Oakwood Technology College* Owatonna Tool Company* Oklahoma Tax Commission* Odenton Town Center* Officer in Tactical Command* Officer Training Corps* Offshore Technology Conference* Ohio Turnpike Commission...
stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
, as well as on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
as ADRs
American Depositary Receipt
An American depositary receipt is a negotiable security that represents the underlying securities of a non-U.S. company that trades in the US financial markets...
. The company was worth about nine billion dollars by the end of 2006.
History and operations
Polyus was founded in 1980 by Hazret SovmenHazret Sovmen
Hazret Medzhidovich Sovmen was the second President of the Republic of Adygea, Russia, having succeeded Aslan Dzharimov at the post. Sovmen is a university professor from Maykop. Before becoming President, Hazret Sovmen had been a successful businessman , having started off as a bulldozer driver...
and began working the Olympiad gold field. In 1994 the company obtained the mining license to operate the Olympiada mine. Two years later smelting
Smelting
Smelting is a form of extractive metallurgy; its main use is to produce a metal from its ore. This includes iron extraction from iron ore, and copper extraction and other base metals from their ores...
operations began.
Lenzoloto, located in the Bodaybo
Bodaybo
Bodaybo is a town in Irkutsk Oblast, Russia, located on the Vitim River at its confluence with the Bodaybo River. Population: 12,800 ....
region, was formed in 1921 by the nationalization of over 400 extant gold producers in Siberia
Siberia
Siberia is an extensive region constituting almost all of Northern Asia. Comprising the central and eastern portion of the Russian Federation, it was part of the Soviet Union from its beginning, as its predecessor states, the Tsardom of Russia and the Russian Empire, conquered it during the 16th...
. In 2003, Lenzoloto joined Polyus group.
One year after the discovery of gold in Natalka, the Matrosov Mine was founded. In 2004, after joining the Polyus Group, the mine's resources were reappraised and a new open-pit mine was planned upon. The company estimates that Matrosov will become the largest gold field in Russia by 2010.
Polyus operates the following gold mining facilities:
- Krasnoyarsk KraiKrasnoyarsk KraiKrasnoyarsk Krai is a federal subject of Russia . It is the second largest federal subject after the Sakha Republic, and Russia's largest krai, occupying an area of , which is 13% of the country's total territory. The administrative center of the krai is the city of Krasnoyarsk...
– the large Olympiada deposit; Blagodantoye, Titimukhta, Tyrada, Oleny, Razdolinskaya, Zyryanovskaya, and Panimba fields. - Irkutsk OblastIrkutsk OblastIrkutsk Oblast is a federal subject of Russia , located in southeastern Siberia in the basins of Angara River, Lena, and Nizhnyaya Tunguska Rivers. The administrative center is the city of Irkutsk. Population: -History:...
– Zapadnoye, Verninskoye, Pervenets, and Chyortovo Koryto and Mukodek goldfields as well as some 94 placerPlacerPlacer may refer to one of the following:*Placer deposit*Placer sheep*Placer mining*Placer, rugby league football role.Geographical names:* Placer, Masbate, Philippines* Placer, Surigao del Norte, Philippines...
deposits. - Magadan OblastMagadan OblastMagadan Oblast is a federal subject of Russia in the Far Eastern Federal District. Its administrative center is the city of Magadan....
– giant Natalka deposit and smaller Degdekan and Vostochnoye fields. - Sakha Republic (Yakutia) - Kuranakh ore body and Kyutchus field; 50% interest in the giant Nezhdaninskoye field.
- Amur OblastAmur OblastAmur Oblast is a federal subject of Russia , situated about east of Moscow on the banks of the Amur and Zeya Rivers. It shares its border with the Sakha Republic in the north, Khabarovsk Krai and the Jewish Autonomous Oblast in the east, People's Republic of China in the south, and Zabaykalsky...
– Bamskoye gold field.
All those assets have been consolidated by MMC Norilsk Nickel
MMC Norilsk Nickel
MMC Norilsk Nickel is a nickel and palladium mining and smelting company. Its largest operations are located in the Norilsk–Talnakh area, in northern Russia. MMC stands for "Mining and Metallurgical Company"....
and spun off in 2005 as a separate company still controlled by Interros
Interros
Interros is a Russian conglomerate controlled by Russian oligarch Vladimir Potanin with large stakes in mining, metals, energy, finance, retail, real estate and other sectors...
.
Gold production in 2005 was 33.5 tons, or about one million ounces. The company holds 25.1 million ounces of gold in proven and probable reserves. The company estimates that it has 76.8 million ounces of gold resources.
The company's website states that "producing a ton of gold creates 1000 jobs."
Kazakhgold
In August 2010, Polyus bought 50.1% of KazakhgoldKazakhgold
Kazakhgold is a gold mining company based in Kazakhstan. It has gold mines at Aksu, Bestobe and Zholymbet and is one of Kazakhstan's largest mining companies.-Polyus:...
from the founders, the Assaubayev family. Disputes followed, with allegations that the Assaubayevs had misled Polyus as to the financial state of Kazakhgold. Polyus subsequently sold its stake back to the original owners and dropped its legal action, after which its share price soared.
See also
- Gold as an investmentGold as an investmentOf all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises...
- Mikhail ProkhorovMikhail ProkhorovMikhail Dmitrievitch Prokhorov is a Russian billionaire entrepreneur and owner of the American basketball team, the New Jersey Nets. After graduating from the Moscow Finance Institute he made his name in the financial sector and went on to become one of Russia's leading industrialists in the...
- InterrosInterrosInterros is a Russian conglomerate controlled by Russian oligarch Vladimir Potanin with large stakes in mining, metals, energy, finance, retail, real estate and other sectors...
Polyus prefers not to deal with Lenzoloto minorities.
After Polyus bought 62% of Lenzoloto shares in 2006, Polyus sold Lenzoloto assets to an affiliated company at a low price. With new owner Lenzoloto earnings fell from 500 ml. rubles (19 ml. USD) in 2006 to near zero, and Lenzoloto market capitalization decreased by 20 times. Lenzoloto minorities sent letters to Polyus in 2007 asking for making an offer to Lenzoloto minorities, but till present they were unanswered.