Tender on Acquiring Licenses For the Right to Exploit Deposits of Gold In Russia’s Irkutsk Region

 

February 2, 2000

 

Prepared by Azim Mamanov, BISNIS representative in Novosibirsk

 

Tender on Acquiring Licenses For the Right to Exploit Deposits of Gold In Irkutsk Region.

Prepared by Azim Mamanov, BISNIS representative in Novosibirsk Irkutsk region is rich with natural resources, such as oil, gas, and gold. Irkutsk region is the third largest in Russia in terms of the amount of gold extracted. Eleven tons of gold is being mined annually in the region. In 1999, 12 tons of gold was mined, which the best result for the region since 1915. Over 94 percent of gold was mined in the Bodaibinsky district. However, the local authorities have been attempting to develop gold deposits in other districts.

 

Irkutsk Regional Administration and Natural Resources Management Committee announce tender on acquiring licenses for the right to exploit deposits of gold. Even though only Russian legal entities may acquire the licenses, those American companies involved in the mining industry and operating in Russia, might be interested in participating in the tender through their Russian partners or subsidiaries.  Note: All the prices indicated below are in Rubles. Exchange rate is US$1=28.54 RUR as of January 28, 2000.

 

LOCATION OF NATURAL DEPOSIT #1: Ungura River, Olkhonsky District

    1.. Amount and Category of Resources: P3-20;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 10 kg;

    4.. Fee For Participating in Tender and Issuing License: 9,265 RUR;

    5.. Starting One-Time Payment: 10 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.2 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.9 percent

G) Cost of Geological Information On The Deposit: 5,164 RUR

LOCATION OF NATURAL DEPOSIT #2: Takhtykan-Berikan River (upper reaches), Bodaibinsky District

    1.. Amount and Category of Resources: C1-40, P1-20;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 15 kg;

    4.. Fee For Participating in Tender and Issuing License: 9,265 RUR;

    5.. Starting One-Time Payment: 30 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.4 percent

    b.. For exploring: 3.4 percent

    c.. For mining: 2.8 percent

G) Cost of Geological Information On The Deposit: 5,164 RUR

LOCATION OF NATURAL DEPOSIT #3: Kabritsky River, Bodaibinsky District

    1.. Amount and Category of Resources: P3-60;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 15 kg;

    4.. Fee For Participating in Tender and Issuing License: 9,265 RUR;

    5.. Starting One-Time Payment: 10 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.2 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.7 percent

G) Cost of Geological Information On The Deposit: 5,164 RUR

LOCATION OF NATURAL DEPOSIT #4: Bolshoi Barakun River (middle reaches), Bodaibinsky District

    1.. Amount and Category of Resources: P1-70, P2-48, P3-40

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 20 kg;

    4.. Fee For Participating in Tender and Issuing License: 9,265 RUR;

    5.. Starting One-Time Payment: 20 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.0 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.6 percent

G) Cost of Geological Information On The Deposit: 9,626 RUR

LOCATION OF NATURAL DEPOSIT #5: Akanak-Nakatami River (upper reaches), Bodaibinsky District

    1.. Amount and Category of Resources: P3-1400;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 100 kg;

    4.. Fee For Participating in Tender and Issuing License: 13,891 RUR;

    5.. Starting One-Time Payment: 10 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.2 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.8 percent

G) Cost of Geological Information On The Deposit: 9,626 RUR

LOCATION OF NATURAL DEPOSIT #6: Murkhoi River, Nizhneudinsky District

    1.. Amount and Category of Resources: P3-720;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 70 kg;

    4.. Fee For Participating in Tender and Issuing License: 13,891 RUR;

    5.. Starting One-Time Payment: 10 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.0 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.7 percent

G) Cost of Geological Information On The Deposit: 9,626 RUR

LOCATION OF NATURAL DEPOSIT #7: Maly Isselei River, Nizhneudinsky District

    1.. Amount and Category of Resources: P2-27, P3-35;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 15 kg;

    4.. Fee For Participating in Tender and Issuing License: 9,265 RUR;

    5.. Starting One-time Payment: 15 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.0 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.6 percent

G) Cost of Geological Information On The Deposit: 5,164 RUR

LOCATION OF NATURAL DEPOSIT #8: Bolshoi Isselei River, Nizhneudinsky District

    1.. Amount and Category of Resources: P2-60, P3-70;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 20 kg;

    4.. Fee For Participating in Tender and Issuing License: 9,265 RUR;

    5.. Starting One-time Payment: 15 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.0 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.6 percent

G) Cost of Geological Information On The Deposit: 5,164 RUR

LOCATION OF NATURAL DEPOSIT #9: Chanchur River (upper reaches), Kachugsky District

    1.. Amount and Category of Resources: P3-80;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 15 kg;

    4.. Fee For Participating in Tender and Issuing License: 9,265 RUR;

    5.. Starting One-time Payment: 10 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.2 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.9 percent

    1.. Cost of Geological Information On The Deposit: 5,164 RUR

LOCATION OF NATURAL DEPOSIT #10: Chanchur River (location Bezymyanny), Kachugsky District

    1.. Amount and Category of Resources: P3-28;

    2.. License Type: Geological Investigation and Mining;

    3.. Average Annual Amount of Gold To Be Mined (no less than): 10 kg;

    4.. Fee For Participating in Tender and Issuing License: 9,265 RUR;

    5.. Starting One-time Payment: 10 percent from a regular payment calculated based on annual anticipated amount of gold mined;

    6.. Starting Regular Payments:

    a.. For searching: 1.2 percent

    b.. For exploring: 3.0 percent

    c.. For mining: 2.9 percent

G) Cost of Geological Information On The Deposit: 5,164 RUR

Main Requirements For Participating In The Tender:

    1.. Applicants to the tender must be Russian legal entities;

    2.. Applicants must be technically equipped, have sufficient finances and qualified staff to be able to investigate deposits and conduct mining work according to the tender*s conditions;

    3.. Mining works should be started no later than II quarter of 2001;

    4.. Licenses will be granted for 25 years;

    5.. After purchasing Geological Information, an applicant must develop a work plan for a deposit, containing calculations of technical and economic indicators. Deadline for submitting the work plan: April 6, 2000;

    6.. An applicant must provide copies of documents that permit conducting activities related to exploration of natural resources;

    7.. Tender will be conducted in the building of the Regional Administration, office 138

    8.. Applications must be submitted at the following address:

    Natural Resources Management Committee of the Irkutsk Oblast,

    7 Kievskaya St.,

    Irkutsk, Russia 664003

    Phone: 7-3952-335075

    9.. Deadline for submitting applications: March 14, 2000;

For further details on the tender, please contact:

Mr. Vladimir Sklyarov, head of the Natural Resources Management Committee of the Irkutsk Oblast,

7 Kievskaya St.,

Irkutsk, Russia 664003

Phone: 7-3952-335075

Fax: 7-3952-276760