PJSC Polyus (LSE, MOEX: PLZL) (“Polyus”, or the “Company”) informs on the completion of the Ust-Omchug — Omchak power project in Magadan region.
Following the completion of construction and receiving permits from state regulators, Natalka was successfully connected to a new 220 kV power grid, Ust-Omchug — Omchak.
The total construction capex (excluding VAT) amounted to approximately RUB 10 bln (ca. $126 mln). Approximately RUB 6.5 bln (ca. $83 mln) out of the total capex spending is attributable to state subsidies, received by the Company in 2016-2019.
The new line provides additional energy transmission capacity, improving the reliability of low-cost renewable power supply in the region. Earlier this year, Polyus has signed a large-scale five-year electricity supply contract with the regional hydropower company, PJSC Kolymaenergo, a subsidiary of PJSC RusHydro. As of today, Natalka covers 90% of its electricity demand from renewable sources.
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
The Ust Omchug — Omchak line is an important infrastructure project that facilitates continuity of operational processes at Natalka. It also contributes to our company’s development as a responsible operator, as Polyus is committed to creating a low-carbon and sustainable future.
Polyus is the world’s fourth-largest gold mining company by production volumes and one of two gold miners with the largest attributable gold reserves. The company demonstrates the lowest production costs among major global gold producers. Its principal operations are located in Siberia and the Russian Far East: Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).
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Forward looking statements
This announcement may contain forward-looking statements concerning Polyus and/or Polyus group. Generally, the words will, may, should, could, would, can, continue, opportunity, believes, expects, intends, anticipates, estimates or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.