Open Joint-Stock Society Okhotsk Gold Mining Company (80% of shares belong to Polymetal, Saint-Petersburg) held its annual shareholders meeting.
Open Joint-Stock Society Okhotsk Gold Mining Company (80% of shares belong to Polymetal, Saint-Petersburg) held its annual shareholders meeting.Participants of the meeting approved the annual report, the annual financial report, including reports on profits and losses for the results of the financial year, 2001.
Results of activity in 2001 show that there was no profit, so it was decided that dividends for 2001 would not be paid. Participants of the assembly made amendments to the charter of the Society, bringing it into line with the federal law "About joint-stock companies" and incorporating amendments in this law made on 07.08.2001.
The assembly elected the Board and the Revision Committee, approved the auditor of the company, MEM Firm, a limited company. Okhotsk Gold Mining Company started commercial development of Khakanja deposit in Okhotsk district of Khabarovsk region in 1999. It is the largest investment project of all mining projects in Khabarovsk region. Mineable reserves of the deposit are 59.63 tons of gold and 2668 tons of silver. Total cost of Khakanja deposit development project is approximately 50 million US dollars.
Three million dollars were invested in 1999, 8 million dollars in 2000, 13.8 million dollars in 2001. In 2002-2003 there are plans to invest 15.9 million dollars and 9.3 million dollars respectively. Last year was the most important stage in the development of the deposit. During this stage, working projects were updated, licensing documentation was obtained, geological research for constructing sites was conducted, and construction was carried out.
Settlements for personnel, an administration and consumer service complex, storehouse for combustible materials and lubricants have all been constructed. Mechanical repair workshops, where equipment installation is carried out, have likewise been constructed. Two storehouses for explosives are under construction, and the erection of a gold extraction mill has begun. The mill is a complex technical construction, and a special soil-freezing technique will be applied during the building process. Once the foundations have been completed, construction of the building itself will begin. Special attention is paid to cargo delivery.
In the course of the shipping season for 2001, thirteen tons of machinery, equipment, metal constructions, combustible materials and lubricants, spare parts, stripping materials and food were delivered. A fleet of vehicles was established to carry out all operations. This includes 143 different vehicles: digging equipment, trucks ("BelAz"), cranes, ATVs, cars etc. Until recently, delivery of cargo was carried out in two stages: during the summer period (June - October) by water to Оkhotsk, and thence to the deposit, because of the lack of transportation routes, and by motor transport in winter (December - March).
The situation has now changed. A 90 km dirt road now connects the construction ground to Okhotsk settlement, and this will facilitate supply to the deposit. A road from the quarry to the tailing dump is under construction, and soon the tailing dump causeway will be built, using quarry rock. In 2002 the quarry should be fully prepared for mining in 2003.
source: Polymetal press release, 30.04.2002