Kinross confirms plans to divest Russian assets, in talks with potential buyer

MOSCOW. March 30 (Interfax) - Canadian gold miner Kinross Gold Corporation has confirmed that it plans to divest its Russian assets.

Kinross has received a number of proposals regarding its Russian business and is now in exclusive negotiations with a third-party mining company regarding a potential sale of 100% of its assets in the country, the company said in a press release.

Any such divesture or change of control would be subject to Russian government approval, Kinross added.

As part of the exclusivity agreement and to properly maintain assets pending a change of control, the company's Russian subsidiaries are continuing to operate during the transition period. But the parent company will not benefit financially from the operations while the transition plan is finalized, Kinross said.

Interfax sources said on Tuesday that Kinross had engaged an investment bank to look for a buyer for its Russian assets.

The Canadian company's business in Russia includes the Kupol and Dvoinoye operations in Chukotka, although Kinross has not been mining at the latter for more than a year, only producing gold from previously accumulated ore and ore mined at Kupol. Kinross also has the Chulbatkan development project in Khabarovsk Territory.