(Bloomberg) — Russian tycoon Andrey Komarov is setting his sights on treasured metals mining after promoting ChelPipe PJSC, the pipe maker that made him a billionaire.
Komarov is talks to buy the Kumroch gold deposit in Russia’s Far East from Zoloto Kamchatki, in keeping with individuals acquainted with the matter, who requested to not be recognized because it’s non-public. He’s additionally excited by investing within the Fedorova Tundra platinum and palladium mission within the Murmansk area, the top of the corporate that owns the deposit stated in March.
Whereas demand for metal pipes fell throughout the coronavirus disaster, platinum-group metals costs rallied on provide disruptions and stricter emissions guidelines that enhance utilization in autocatalysts. Though gold has been pressured in latest months on bets for a financial restoration, costs are nonetheless traditionally excessive amid ultra-loose financial insurance policies all over the world.
A spokeswoman for Komarov stated he’s contemplating investing within the Fedorova Tundra deposit sooner or later and that he’s excited by mining tasks generally, with out elaborating. Zoloto Kamchatki’s press service declined to remark.
Till final yr, Zoloto Kamchatki was managed by billionaire Viktor Vekselberg’s Renova, which bought it to Complexprom, an organization owned by former Renova managers, a spokesman for Renova stated, with out elaborating.
Komarov, 54, purchased his first stake in ChelPipe within the late Nineteen Nineties, and noticed his wealth soar after rebuilding the corporate’s services, impressing the Kremlin. When visiting a brand new web site in Chelyabinsk in 2010, President Vladimir Putin stated the trendy structure made it look extra like “Disneyland” than a pipe workshop.
In March, Komarov bought his 86.5% stake in ChelPipe to rival TMK PJSC for 84 billion rubles ($1.1 billion). The tycoon’s fortune now stands at about $1.4 billion, in keeping with the Bloomberg Billionaires Index.
The Kumroch deposit holds 200 tons of gold sources and is because of begin mining in 2025, with anticipated annual output of as a lot as 5 tons (161,000 ounces).
Komarov’s Atom Gold has already filed paperwork to the anti-monopoly service to approve the acquisition of 75% and one share of the corporate that holds the Kumroch license, the individuals stated. The remainder could be held by Zoloto Kamchatki, with the partnership sharing the dangers of a giant mission, they stated.
The Fedorova Tundra deposit is predicted to supply as a lot as 250,000 tons of focus yearly, largely containing PGMs, but additionally nickel, copper and gold. Fedorovo Assets took over the license from Barrick Gold Corp. final yr.
(Corrects from second paragraph to replicate present possession of Zoloto Kamchatki.)
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