After first announcing the formation of a divestment plan late last month, Canadian miner Kinross Gold has entered a definitive agreement to sell off its Russian assets to Highland Gold Mining for US$680 million in cash.
The assets include the actively operating Kupol mine; exploration assets including the Chulbatkan project; and other related infrastructure.
Specifically, Kinross said, it will receive a total of $400 million in cash for the Kupol mine and the surrounding exploration licenses, which includes payment of $100 million upon closing, as well as additional payments of $150 million before the end of 2023, $100 million before the end of 2024, and $50 million before the end of 2025.
Kinross will also receive a total of $280 million in cash for its Udinsk project, which includes payments of $80 million before the end of 2025, $100 million before the end of 2026, and $100 million before the end of 2027.
The mines and properties represent 100% of Kinross’ Russian holdings. Highland Gold is one of Russia’s largest gold mining companies with several mines in the Chukotka and Khabarovsk regions, where the Kupol mine and Udinsk project are respectively located.
The transaction is pending approval of the Russian government; the country’s Ministry of Industry and Trade has already confirmed its support of the deal.
In early March, just days after Russia’s invasion of Ukraine, Kinross said it was suspending operations at the Udinsk project and Kupol mine in Russia “with a focus on the safety and wellbeing” of its 2,000 employees there.
Senior miner Kinross also has operations in the United States, Brazil, Mauritania, Chile, Ghana and Canada.
Source: Kinross Gold