Rostec to receive Mikhailov gold-polymetallic block in Kabardino-Balkaria for 850 mln rubles

MOSCOW. May 26 (Interfax) - The Elbrusmetal-Zoloto company, part of Rostec state corporation, has been declared the winner in the auction for the Mikhailov block of federal subsoil in Kabardino-Balkaria, which includes the Gitche-Tyrnyauzskoye and Nizhneskarnovoye deposits, respectively.

Russia's Natural Resources Ministry told Interfax that the company would pay 850.4 million rubles for the block.

The Natural Resources Ministry at the end of March said that the auction for the Mikhailov block was expected to occur in the third quarter. However, a government instruction to conduct the auction was signed on April 8, and the Federal Subsoil Resources Management Agency (Rosnedra) issued the corresponding order on April 14. Applications to participate in the auction were accepted from April 18 to May 10.

Rostec, as represented by the Elbrusmetal holding, already has an asset in Kabardino-Balkaria, namely the project to resume extracting and processing of tungsten-molybdenum ore at the Tyrnyauz deposit.

According to the auction materials, the reserves of the Mikhailov deposit are estimated at 87.7 tonnes of gold and 207.7 tonnes of silver; resources of 32.2 tonnes of gold and 71.1 tonnes of silver; plus reserves of tungsten and molybdenum at Gitche-Tyrnyauzskoye and abrasive garnet at Nizhneskarnovoye.