CALGARY/MOSCOW, Sept 30 (Reuters) – Canada’s Kinross Gold Corp is putting future deals in Russia on hold after snapping up a development project in a country hit by Western sanctions.
The Toronto-based miner in July acquired the undeveloped Chulbatkan asset from closely held N-Mining for $283 million in cash and shares.
The acquisition will add 3.9 million indicated ounces of gold to Kinross’ books, according to the company. Foreign investment in new mining projects in Russia has grown scarce due to Western sanctions levelled after the 2014 annexation by Russia of Crimea from Ukraine.
The deal with N-Mining does not breach any sanctions but still requires Russian approval. The deal follows a years-long effort by Kinross Chief Executive Paul Rollinson to cultivate ties in Russia even as diplomatic relations with the West – including Canada – have soured.
“If you own our stock, by definition you’re comfortable with Russia, but that doesn’t mean we want to go overboard,” Rollinson told Reuters.
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