Russia's UMMC entities in talks to buy controlling stake in gold miner UGC - paper

MOSCOW. Oct 1 (Interfax) - A controlling stake in Russian gold miner Uzhuralzoloto (UGC) , which used to be owned by Konstantin Strukov, could be sold to Atlas Mining, which is linked to Ural Mining and Metallurgical Company (UMMC), the Izvestia newspaper said, quoting its own sources.

The paper said talks were underway between UMMC and the Russian Finance Ministry, which is responsible for selling the government stake in UGC.

As well as gold mining assets, the deal will include the MelTEK coal company in the Kemerovo region, real estate including the Chelyabinsk City skyscraper, and other assets previously owned by Strukov. A source told the publication the sale could be at a discount.

The Finance Ministry has said the state could sell a controlling stake in UGC to a major minority shareholder, without specifying naming the minority shareholder. The only such shareholder is Gazprombank , which acquired 22% of UGC from Strukov in 2024. However, Izvestia's source said the bank had no intention of increasing its stake in the company.

Uzhuralzoloto is one of Russia's largest goldmining companies. It operates through two hubs, the Urals hub in the Chelyabinsk region and the Siberian hub in Krasnoyarsk Territory and Khakassia. Until recently, Strukov was the controlling shareholder, but in line with a court decision, in mid-July 67% of the gold mining company was transferred to state ownership.