Yuzhuralzoloto, owned by Konstantin Strukov, stands out among Russian gold miners as one of the leading producers of gold production and available resources. With a total resource base estimated at 51.8 million ounces of gold equivalent, the company has a solid foundation for stable production over the next 30 years.
Over the past decade, the Yuzhuralzoloto Group of Companies has experienced significant growth:
- Gold sales volume has increased by 2.1 times, reaching 451 thousand troy ounces.
- Proven and probable reserves have nearly tripled, totaling 11.1 million troy ounces.
- Measured, Indicated, and Inferred Mineral Resources have grown nearly sevenfold, amounting to 40.7 million troy ounces.
- Production capacity has expanded ninefold, reaching 25.3 million tons of ore annually.
The production process
The production process involves extracting and processing ore from open pits and mines located in two hubs: the Ural (Chelyabinsk Region) and Siberian (Krasnoyarsk Territory and Khakassia). These hubs, comprising ten active fields, contribute equally to the production volume.
Additionally, there are seven fields in the additional exploration and preparation stage for production, along with eight processing plants. The company plans to construct another processing plant by 2026.
Open-pit mining is the primary extraction method, accounting for over 90% of the total extraction. More costly underground mining represents less than 10% of the operations. The precious metal extracted from the ore is smelted into doré alloy, containing approximately 80% gold.
Subsequently, the bars undergo enrichment (refinement) at the Shchelkovsky secondary precious metals plant, a part of SouthGC, to achieve a grade of 0.995 and higher before being sold.
SUEK, the parent company, has ambitious plans for Yuzhuralzoloto. By 2026, they aim to increase gold production by over 60% to 750 thousand troy ounces, positioning themselves as one of Russia’s top three gold miners. By 2028, they plan to increase production by 2.1 times compared to the 2022 level, reaching 944 thousand troy ounces. Notably, a production growth of over 20% is projected for 2024.
These plans hinge on three key growth projects: the Kurasan mine, the Kommunar gold extraction plant, and the Vysokoye mine, all equipped with Russian-Chinese machinery. Moreover, the company is currently in the downward phase of capital expenditures as most of the required equipment has already been purchased and delivered.
In conclusion, Yuzhuralzoloto, under the umbrella of SUEK, exhibits significant potential for continued growth and productivity in the gold mining industry. Its large resource base, strategic mining locations, and diversified portfolio of active and exploratory fields underpin the company’s robust production capacity.
Capitalizing on efficiencies in open pit mining and continuous investment in modern extraction and processing technologies, Yuzhuralzoloto is poised to boost its production significantly in the coming years. The company’s ambitious plans reflect its commitment to maintaining a leading position among Russian gold miners, and its ongoing growth strategy is expected to reinforce its standing on the global stage.
