By the end of the year a large gold-mining company on the base of the Sukhoi Log field will be created, said the regional administration quoting Governor Boris Govorin. The company would become the fifth largest in the world by volume of mining gold. It will be created on the base of assets of the Lenzoloto company and the Sukhoi Log field.
'The Russian government and Irkutsk Region came to the decision that it is necessary to sell the government stake in Lenzoloto, said Govorin. He also said that 44.9% of Lenzoloto's shares would be up for auction, shares which belong to the government and 5.6% of shares controlled by Irkutsk Region.
Govorin said already in June an announcement about the conditions of the competition for the development of the Sukhoi Log field would be signed. By December 2003 an effective consumer of the field must come forward, said Govorin.
According to preliminary estimates, 1.5 - 2 thousand new jobs and USD 31.7 million income in the region's budget each year would become a reality with the exploitation of the field. Output is estimated at 50 tonnes of ore gold annually. At the present time the region has an output of 17 tonnes of ore gold.
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