Bloomberg News

Polyus Gold ‘Too Busy’ With Growth Strategy for Merger Talks

October 05, 2011

(Adds producers’ rankings in fourth paragraph. )

Oct. 5 (Bloomberg) -- Polyus Gold International Plc, Russia’s largest producer of the precious metal, is focused on its growth strategy and doesn’t have mergers in its current plans, said Chief Operating Officer James Nieuwenhuys.

“We are far too busy now,” Nieuwenhuys told reporters at a mining conference in Moscow. Polyus is concentrating on its goals of increasing production, moving its domicile from Jersey to the U.K. mainland, and gaining inclusion in the benchmark FTSE 100 Index, he said.

Billionaire co-owner Mikhail Prokhorov said in December the company was seeking to merge with an international rival as early as this year to become one of the world’s three biggest gold miners. Polyus completed a reverse takeover of Kazakhgold Group in July, gaining a primary London listing.

Barrick Gold Corp., Newmont Mining Corp. and AngloGold Ashanti Ltd. were the top three producers in 2010, according to London-based researcher GFMS Ltd. Polyus Gold was in 10th place with 43.1 metric tons of gold produced, it said.

Polyus plans to spend $8.7 billion by 2020 on increasing production, Nieuwenhuys said. The company targets spending of $4.7 billion to double output to 2.8 million ounces by 2015, and the rest of the investment to reach 4.4 million ounces of production by 2020, he said earlier at the Minex Russia conference.

--Editors: John Viljoen, Tony Barrett

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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