Russia’s Far East Development Fund and China’s state-owned gold mining company, China National Gold Group, are to sign an accord by the end of this year on setting up a joint US$1 billion investment fund targeting new projects in the metals and mining sector.
“Ourselves and China Gold are creating a fund in which private investors too can take part and turn a profit. Our first goal is to invest in projects to mine gold, precious metals and copper,” Far East Development Fund head Aleksey Chekunov told media.
The fund is slated to begin dispensing funds for projects next year and will have an initial capital of US$500 million to put to work. That will increase with contributions from both sides, as well as private investors.
The Far East Development Fund (FEDF) was established in 2011 to provide soft loans for the implementation of investment projects in Russia’s Far East. Its only shareholder is the state lender Vnesheconombank, whose mission is to aid in development projects and foreign economic relations. FEDF assets as of June 2017 stood at US$614 million.
China’s Metropoly Holdings and Sinohigh Investment have also expressed interest in establishing two joint Russia-focused investment funds, one in mining and metals and another for infrastructure and development projects.
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