Kinross, which has been operating in Russia for about 25 years, will receive a total of $400 million for its Kupol underground mine and surrounding exploration licenses in the far eastern region of Chukotka, about 7,000 kilometers from Ukraine. .
The gold miner will also get a total of $280 million in cash for Udinsk, the first project it planned to develop on the Chulbatkan license, acquired in 2020. Kinross had planned to start production at the pit in 2025 .
Prior to the invasion of Ukraine, Kinross had forecast that approximately 13% of its global production would come from Russia.
Highland Gold is one of Russia’s largest gold producers, with a portfolio of assets located in four mining regions: Chita, Kamchatka, Chukotka and Khabarovsk. The company is also commissioning the Ozernoe mine in Buryatia.
The general director of the company, Vladislav Sviblov said in a separate statement that since the Kupol mine and the Udinsk project were located close to its existing operations, Highland Gold expected operational, logistical and management synergies.
The transaction, subject to Moscow’s approval and the finalization of certain side agreements, is the first sale of assets by a Western company to Russia since the start of the war in Ukraine.