Source Pravda.Ru

No money available to develop new gold deposits in Komi Republic

Prospecting work has begun in the Urals near Vorkuta for the first time in 15 years. Geologists are drilling down to 100 metres and, according to Komiinform, have already received their first positive results: there are deposits of gold, nickel, manganese and chromites near the town.

However, there are question marks over whether the work and more detailed exploration, to say nothing of actual mining, will continue. According to Igor Derevyanko, the general director of Polyarnoyralgeologiya, the Russian Ministry of Natural Resources has still not signed a single contract with the geologists for production in 2003. The project has not faced such long delays before.

Geologists from Vorkuta begun work at their own expense, while hoping to receive funding soon. Over 5 months they have spent 3 million roubles (USD 97,000). The Komi Republic has not been much help either. It has only paid off 20% of its debt for 2002 and it is not clear when it will pay the remaining 30 million roubles (USD 974,000). Meanwhile, Polyarnoyralgeologiya is having to get by on bank loans.

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