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. Last Updated: 07/27/2016

Polymetal to Spend $150M on Gold Project

Polymetal, the country's third-largest gold miner, plans to spend $150 million to $200 million by 2010 to develop its Albazino project in the country's Far East as part of a wider expansion, the company said Friday.

St. Petersburg-based Polymetal plans to build two plants to process ore and concentrate from the deposit, which will produce at least 200,000 to 250,000 ounces per year of gold, almost as much as the company's entire production of the metal last year.

"The capex will be divided equally between 2008 and 2009, with a little remaining in 2010," said Bree Schuette, Polymetal's director of investor relations.

Gold rose 23 percent in value last year, with prices hitting 26-year highs on a wider investment boom in commodities.

Polymetal, also the country's top silver miner, was valued at $2.4 billion in a share listing in February. It produced 256,000 ounces of gold and 17.3 million ounces of silver last year and is developing projects in Russia and Mongolia.

Polymetal last year acquired Resources Albazino, which is developing the deposit of the same name in Khabarovsk region. The deposit is around 150 kilometers from the Pacific port of Nikolayevsk-on-Amur. The company said local authorities had approved plans to build an ore-processing plant in Polin Osipenko, the area within Khabarovsk where Albazino is located.