Polyus Gold

Polyus Gold Joint Stock Company is the leading gold producer in Russia. It has its headquarters in Moscow but explores mines in regions all over the country: the Sakha Republic (the largest federal subject in Russia), Krasnoyarsk Krai and Irkutsk Oblast in the central part of the country, Magadan Oblast and Amur Oblast in eastern and south-eastern Russia, respectively.

The company was founded in 1980 by Hazret Sovmen, the second President of the Republic of Adygea. In 1996, after 16 years of gold mining, it began smelting operations as well. In 2003, the Lenzoloto company joined Polyus Gold, and, in 2004, the Matrosov Mine in Natalka was founded. The mine is estimated to become the largest Russian gold field by the end of 2010.

At present, Polyus Gold is part of the Interros Holding which is controlled by the Russian oligarch Vladimir Potanin. The company’s stock is traded on the Russian Trading System Stock Exchange and MICEX exchange in Russia, on the London Stock Exchange in the United Kingdom, and on the OTC stock exchange in New York, USA.

In recent years, Polyus Gold has also begun operations in foreign territories such as the Republic of Kazakhstan, Romania, and Kyrgyzstan. Its total production of gold for 2008 was 38.0 tons (1.2 m oz). As of January 1st 2009, the company's proven and probable reserves amount to 74.1 m oz, as pointed in the Independent Expert's Report by Micon International.

The Olympiada deposit of Polyus Gold is situated in the Krasnoyarsk region and contains primary and oxide ores. About 90 percent of the gold reserves are contained in the eastern part of the mining site. The total gold reserves in the deposit reach estimated 417 tons of gold. Discovered in 1968, the Blagodatnoye deposit holds estimated 40 tons of gold. The fine gold contained in the ores is extractable via direct leaching. The Tyrada deposit is located near the Olympiada mining site and contains primary and oxide ore as well as ore bodies with mixture of ores. The total reserves of the site amount to estimated 4 tons of gold. The Olenii deposit contains ores with mafic minerals, carbons, titanium, tungsten, sulfides, and other minerals. Total estimated gold reserves stand at 7 tons of gold.

As an exemplar corporate citizen, Polyus Gold supports various educational and sports activities in the regions where it operates. Numerous schools and kindergartens have been built or renovated with the company’s funds. Moreover, Polyus Gold encourages the growth of Russian culture, and the discovery and development of young talents by awarding individual scholarships or sponsoring talent contests.

The company has significantly contributed to the establishment of good infrastructure in the local communities where it concentrates its business. It has built and repaired roads, factories, and houses in economically regressive districts along the Russian borders. Polyus Gold has also provided food on the table in thousands of families by creating new jobs for people who would otherwise have had no means of subsistence.

As a truly modern company, Polyus Gold is also actively committed to environmental protection. In its operation, it complies with the requirements of the International Cyanide Management Code and plans to integrate the ISO 9001:2000 and ISO 14001:1996 environmental management systems by the end of 2010.

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