UMMC looks for new gold acquisition target after deal to buy GV Gold stalls - paper

MOSCOW. April 19 (Interfax) - Ural Mining and Metallurgical Company (UMMC) is looking for acquisition targets in Russia's gold mining industry, national daily Kommersant reported on Tuesday, citing sources.

UMMC's deal to acquire GV Gold has stalled and will probably fall through because the parties cannot agree on a price, the paper's sources said. Interfax sources in the industry said the same.

The Federal Antimonopoly Service approved UMMC's application to buy GV Gold back in January, but there has not been any news on the deal since then.

UMMC, which specializes primarily in copper and zinc production, already mines about 4.8 tonnes of associated gold per year, the Russian Gold Producers Union estimated, without including possible processing of feedstock on a tolling basis. If it managed to close the deal to acquire GV Gold, one of Russia's top ten gold miners, UMMC would rise significantly in the ranking of Russian gold producers.

UMMC is one of Russia's largest producers of copper, zinc, coal and precious metals.