Bloomberg News

Polyus to More Than Triple Output by 2015, Chief Says

November 09, 2006

OAO Polyus Gold, Russia's biggest gold producer, said it plans to more than triple annual production by 2015 and has provable reserves of 50.8 million ounces.

Polyus plans to increase output to 3.9 million ounces by 2015, making it one of the world's top five producers, Chief Executive Officer Evgeny Ivanov said today at the RBC Capital Markets Gold Mining Conference in London. The Moscow-based company dropped three places to No. 15 last year, according to rankings by research company GFMS Ltd.

Separately, Polyus said in a press released today that it bought 50 percent of the Nezhaninskoye gold deposit in Russia's Far East from its holding company Interros for $300 million.

Shares of Polyus, which began trading in Russia in May, gained 30 cents, or 0.6 percent, to $47.30 in Moscow.

OAO GMK Norilsk Nickel, the world's biggest nickel and palladium miner, spun off Polyus on Jan. 1. Polyus is controlled by billionaires Vladimir Potanin and Mikhail Prokhorov, whose wealth is estimated by Forbes magazine at $6.4 billion each.

Potanin, 45, the president of Interros, which owns Norilsk, and Norilsk General Director Prokhorov, 40, hold about 55 percent of Norilsk and Polyus.

To contact the reporter on this story: Danielle Rossingh in London at drossingh@bloomberg.net; Samantha Shields in Moscow at sshields2@bloomberg.net.

To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net.


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