After more than 20 years in Russia, Kinross Gold Corp.’s future in the country is in doubt, with some analysts speculating there may be no path back to production there, even if the war in Ukraine ends quickly.
The Toronto-based gold miner said it is mothballing its Kupol mine in Russia’s far east and its development project Udinsk, in the face of tightening Western sanctions against Russia, and after several other multinationals started pulling out of the country.
Last year, Russia accounted for 23 per cent of Kinross’s production, and the Kupol mine complex was its most profitable segment, generating US$443-million. Only last week, Kinross had reassured the market that all was well at Kupol.
The mine was producing as normal, and had enough supplies on hand to last a year, the company said. It wasn’t overly concerned about the war, because it had weathered a similar crisis in Russia before, referring to the 2014 annexation of Crimea.
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