Polymetal agrees to ship 50% of Kyzyl concentrate to China under off-take contracts
ASTANA. April 19 (Interfax) - Polymetal , Russia's largest silver producer and one of the country's biggest gold miners, has agreed at the initial stage to ship 50% of concentrate from its Kyzyl gold deposit in Kazakhstan to China under off-take contracts, the head of Polymetal Eurasia, Kanat Dosmukametov told Interfax.
"We've already done a lot of preliminary work on selling concentrates in China. We've shipped preliminary samples for processing and received positive results," he said.
Following negotiations with several Chinese partners, the company "received a positive response," he said.
"At the initial stage, we're talking about a 50% share of total concentrate that will be produced at Kyzyl. In the first years we'll start to produce upwards of 2 tonnes, then, when the plant reaches full capacity, concentrate production will reach 10 tonnes. Accordingly, 50% of this concentrate will be shipped to China," Dosmukametov said.
Polymetal's operations are located in Magadan and Sverdlovsk regions, Khabarovsk Territory, Chukotka, Kazakhstan and Armenia. Polymetal's largest shareholders are Alexander Nesis's ICT Group with 26.69%, Petr Kellner's PPF Group with 12.83% and the family of Alexander Mamut with 10.05%. Polymetal is listed on the London Stock Exchange and the Moscow Exchange . The company's free float exceeds 50%.