Resource World Magazine

68 www.resourceworld.com O C T O B E R / N O V E M B E R 2 0 1 9 * Resource World does not sell your information to third parties #203 – 1205 56th Street, Delta, BC Canada V4L 2A6 online at www.resourceworld.com or phone 1.877.484.3800 SAVE 50% up to Resource World (Print and Digital Edition) 1 Year/6 issues (CAD $24.95) Resource World (Digital Edition) 1 Year/6 issues (CAD $12.95) U.S. residents please pay in U.S. dollars Resource World International (outside Canada and USA) (Print and Digital Edition) 1 Year/6 issues (CAD $99.95) NAME ADDRESS TEL EMAIL well as foreigners usually operate fields with explored reserves of about 100–250 tonnes. In Chukotka, for example, fields include Kekura and Klen, a license for which development is currently owned by Highland Gold. According to official spokesman, Dmitry Kobylkin, at present, the majority of Russian gold mining fields are explored in stages but not entirely. That negatively affects the entire industry and stimulates more rapid depletion of the existing reserves. In an official response to Resource World magazine, the Russian government said, "The rights of foreign investors in the domestic mining industry, including gold mining, are currently fixed in the existing Federal Law of 09.07.1999 No. 160-FZ On Foreign Investments in the Russian Federation. The law provides a number of key guarantees for foreign investors, such as: • a guarantee of the use by a foreign investor of various forms of investments in the territory of the Russian Federation; • a guarantee of legal protection for the activities of foreign inves- tors in the Russian Federation; • a guarantee of ensuring the proper resolution of a dispute arising in connection with the implementation of investments and entre- preneurial activities in the territory of the Russian Federation by a foreign investor. "Investing in exploration and mining in subsoil areas of federal significance with regards to certain types of strategic mineral raw materials is regulated by special legislation, namely Federal Law dated 29.04.2008 No. 57- On the Procedure for Making Foreign Investments in Business Companies with Strategic Significance for ensuring the country's defense and state security. "The legislation allows the participation of foreign investors to complete these transactions for investing in exploration and mining in resource areas of federal significance. However, their launch requires the approval of a government commission. "In regard to the latest state initiative, it was developed in connection with the instruction of the Russian President Putin. The design of the bill is already completed and it is currently a subject of various conciliation proceedings. "Today, there is an urgent need to intensify the reproduction of the mineral resource base for gold in Russia. Raising the threshold for classifying subsoil areas containing gold as subsoil areas of federal significance from the current level of 50 tons to 200 tons will significantly simplify a number of administrative procedures for licensing these subsoil areas and minimize the potential risks of foreign investors. "It is expected that such an increase in the threshold, when classifying subsoil blocks as federal significance, will create a favorable investment climate in Russia for foreign companies." n RUSSIA; continued from page 59 RUSSIA'S LARGEST MINING COMPANIES (2018) Mining and Metallurgical Company Norilsk Nickel [GMKN-ME] is one of the world's leading producers of nickel. It's also a leading producer of platinum metals. Polyus Gold [PLZL-ME] operates five mines in Russia and is the largest gold producer in Russia with probable and proven reserves of 68 million ounces. Alrosa [ALRS-ME] is the world's largest diamond producer in terms of output, which hit 39.6 million carats in 2017. Uralkali [URKA-ME] produces a large percentage of the world's potash from mining to supplying potassium chloride to customers.

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