Electricity cost drop expected at TransSiberian Golds Far East of Russia mine

first_imgTrans-Siberian Gold’s Asacha mine is set to benefit from government-backed incentive measures to support the development of the Far East of Russia.The company reported that it has entered into a new electricity supply agreement with Kamchatskenergo, which will supply power to Asacha at a reduced price of RUB4.69/kWh ($0.07/kWh).The agreement with Kamchatskenergo, a subsidiary of RAO Energy Systems of the East Group (part of the RusHydro Group), is for an initial period of 12 months.Alexander Dorogov, CEO of TSG, said: “Power is a significant production cost and we are pleased to have secured a substantial cost saving with the support of the regional Government of Kamchatka. We are grateful for this, which affirms the Far East of Russia as an attractive place for gold mining.”Meanwhile, operational performance at Asacha continued to improve in the second half of 2018. In the December quarter, improving gold grades led to higher output, the company said. This meant the company was expected to slightly exceed the upper end of its 2018 gold production guidance of 36,000-40,000 oz. The results will be confirmed in a production update later this month.In the most recent trading update, the company said construction of the underground de-watering pumping facilities at Asacha continues, albeit slightly behind the original planning timetable. Completion of the permanent facilities is expected to be achieved by May 2019.last_img read more