Tag Archives: Asacha

Trans-Siberian Gold’s Asacha receives electricity price boost

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Trans-Siberian Gold will continue to receive discounted electricity supply at its Asacha gold mine, in the Far East of Russia, following an agreement with Kamchatskenergo, the main provider of electrical power in Kamchatka.

The agreement with the utility provider will see Asacha supplied with low-tariff rates this year.

TSG has benefited from a reduced tariff of RUB 4.69/kWh ($0.075/kWh) during 2019 which has led to significant cost savings, according to the company.

This program of electricity subsidies supports a policy aimed at encouraging investment into the Far East of Russia and aiding economic growth in the region, following the implementation of incentive measures introduced by the Russian Government, Trans-Siberian said.

The new agreement confirms that Kamchatskenergo will continue to supply electricity at a reduced tariff of RUR 4.75/kWh, the company said.

Alexander Dorogov, Chief Executive Officer of TSG, said: “We are pleased that Trans-Siberian Gold will benefit from the continued support of our local energy provider in 2020, significantly reducing our energy costs as we operate at the lower levels of the Asacha gold mine.”

Late last year, following the signing of an agreement with Russia’s Far East Development Corporation officially confirming the company’s residency in the Kamchatka Advanced Special Economic Zone, Trans-Siberian said it would implement a number of new capital investment projects including the development and construction of an extension to the Asacha gold mine, known as Vein 25.

Additionally, the company will invest in a ventilation unit and procure additional mining equipment for the mine, with the investment expected to reach up to $21.2 million until 2024.

Vein 25 is situated in the East Zone of the Asacha gold mine and is not currently being mined, but preliminary mine development has already commenced.

Electricity cost drop expected at Trans-Siberian Gold’s Far East of Russia mine

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Trans-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.