Polymetal finds concentrate buyers in Japan, Kazakhstan, Korea
MOSCOW. March 31 (Interfax) - Polymetal International sold concentrate from its Dukat gold-silver mining operation in Russia's Magadan region and Varvara gold project in Kazakhstan's Kostanai region under off-take contracts to Japan, South Korea, Kazakhstan and China last year, the Russian miner said in materials.
The company plans to diversify sales from Dukat using off-take arrangements with Japan, Kazakhstan and South Korea in 2014 also.
Polymetal sold two-thirds of the Dukat concentrate under off-take contracts in Q3 2013. The company's CEO, Vitaly Nesis, said at the time that in the prevailing price situation, the company was prepared to sell all of its Dukat concentrate under off-take agreements if enough buyers were found.
Polymetal last year also sold concentrate from the Albazino field in the Khabarovsk territory and Maiskoye in Chukotka to China under off-take contracts.
Polymetal signed two off-take contracts for Maiskoye concentrate with Chinese buyers in April 2013. It supplied 30,000 tonnes of concentrate, equating to 48,000 oz of gold, under those contracts in 2013 as a whole. Right now, Polymetal is negotiating new contracts with China, Nesis said on a conference call on March 31. The two contracts are expected to be signed in May, and, Polymetal hopes, on better terms for the company.
Off-take sales to China from Albazino grew 25% in 2013 to 79,000oz. This year, Albazino concentrate will be processed at the Amursk POX hub and will not be sold to third parties.
Polymetal produced 1.28 million gold equivalent ounces in 2013 and expects to produce 1.3 million oz in 2014 and 1.35 million oz in 2015.
Polymetal is Russia's largest silver producer and one of the country's largest gold miners. The company has operations in Magadan and Sverdlovsk regions, Khabarovsk Territory, Chukotka and Kazakhstan.