Investment Portal of the Arctic Zone of the Russian Federation

New AZRF resident to engage in gold mining in polar Yakutia

The Elgen company will produce more than 1,400 ounces of precious metal annually.

6 April 2022

An agreement on the implementation of an investment project in the Arctic zone of the Russian Federation (AZRF) was signed between the Elgen gold mining company and the Far East Development Corporation. The company intends to develop a placer gold deposit in the Moma district of Yakutia. Private investors will invest more than RUB 30 mn in the project.

The company received the right to use the Levy Elgen subsoil area back in 2021. It is planned to explore the deposit in the next two years.

'We plan to start the industrial development of the site and get the first gold in 2024. According to our preliminary calculations, the plot has 7,000 ounces of gold. The average annual output will total at 1.4 thousand ounces,' predicts Yulia Okhlopkova, Director of the Elgen LLC management company.

AZRF resident status allows the company to claim partial reimbursement of insurance contributions to state non-budgetary funds costs, and also opens up opportunities to receive various administrative preferences. "All this will make it possible to channel more funds to infrastructure development, speed up the project implementation process and create more jobs," said Yulia Okhlopkova.

In Yakutia, the AZRF resident status has been granted to nine enterprises, implementing projects related to mining, air cargo transportation, modernisation of energy facilities and collection and export of ferrous metal scrap. "In addition to major investment projects, agreements on investment activities in the Arctic Zone have also been signed with small and medium-sized businesses specialising in scientific research, food production, and the provision of vehicle inspection services," said Alexandra Pakhomova, Deputy Director for the Arctic Zone of ASEZ Yakutia Management Company (a subsidiary of FEDC).

At present, the amount of private investment already made in projects by Yakutia's AZRF residents is RUB 795 million, and more than 100 jobs have been created at the enterprises. The implementation of all projects will bring RUB 1.2 billion into the republic's economy and employ 280 people.

According to the Far East Development Corporation, more than 380 enterprises and individual entrepreneurs are currently residents of the Arctic Zone of the Russian Federation. The volume of the declared project investments amounts to RUB 374.7 bn. This will create jobs for 16 thousand people.


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