Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Russian miner Nordgold (LON:NORD) has received a fresh 15-year mining permit for its Lefa mine in Guinea, where it plans to invest more than $360 million to continue developing the asset, one of the country’s largest gold producing mines.
The new licence, effective from March 21, is valid until 2034, in line with Lefa’s current life-of-mine.
Nordgold, which spun off of Russian steelmaker Severstal in 2012, acquired the mine in 2010 and has already invested over $1 billion in Guinea, according to the statement.
Nordgold acquired the Lefa mine in 2010 and has already invested over $1 billion in Guinea.
Lefa is one of the largest gold mines in Guinea, employing about 1,200 people and providing over 730 indirect jobs.
The operation, said Nordgold, has contributed almost $12 million to empowering the local communities and it intends to continue doing so, with the aim of improving people’s living conditions for the life-of-mine and beyond.
In 2017, the Lefa’s production increased 7%, churning out a total of 208,800 ounces. Overall, the company produced 968,300 ounces of gold from its nine operating mines, earning revenues of $1.22 billion.
Nordgold, which collected many of its major assets during the 2008-2009 financial crisis, also operates in Russia, Kazakhstan and Burkina Faso.
