Kinross to divest Russian assets
Kinross Gold Corp., is developing a transition plan to divest its Russian assets and is in exclusive negotiations with a third-party mining company to sell 100% of its Russian properties.
As part of the exclusivity agreement and to properly maintain assets pending a change of control, Kinross stated that its Russian subsidiaries are continuing to operate during the transition period, and the company will prioritize the well-being of its more than 2,000 employees in Russia.
Kinross assets in Russian include the Kupol gold mine and the Udinsk development project, and the company stated on March 2 it was suspending activities at Udinsk and looking at suspending operations at Kupol. At that time, Kinross expressed concern about the loss of life and the destruction in Ukraine after Russia’s invasion and donated $1 million to the Canadian Red Cross Ukraine Humanitarian Crisis Appeal.
Kupol Mine
Kinross stated on March 29 that the company also will continue to manage and mitigate the environmental impacts of operations. The efforts will include overseeing monitoring systems and transporting industrial materials to the Kupol Mine that are not permitted to remain at port to maintain safety and regulatory compliance.
The parent company will not benefit financially from the operations while the transition plan is finalized. Current activities can be funded through resources already in-country, with no additional investment required by the Toronto-based Kinross.
Kinross stated that it expects to treat its Russian business as an asset held for sale from an accounting perspective until a change of control is completed. In Nevada, Kinross operates the Bald Mountain Mine in White Pine County and the Round Mountain Mine in Nye County. The company also has mines in Brazil, Mauritania, Chile, Ghana and Canada.
