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.