Page 102 - RusRPTApr19

partly compensated by currency gains. Nordgold is controlled by tycoon Alexei Mordashov and is the former gold wing of metal major Severstal's resources division, which the main company span off in 2012. Company's Ebitda in 2019 went down by 10% to $470mn, with revenues down by 6% to $1.14bn, due to "temporary decline in the share of gold in mined and processed ore". In the meantime Nordgold increased capital expenditure by 47% due to exploration and investment in new mines. In 2018 gold output declined by 6% to 0.907mn ounces, also linked to lower quality of extracted gold ore. In the fourth quarter alone output increased by 3% to 0.234mn ounces, due to higher output on Bouly (Burkina Faso) ad Neryungri (Sakha Republic, Russia). Nordgold also operates in Kazakhstan.
Russia’s gold output rose 13.8% to 17.84 tonnes in January, the Finance Ministry said on March 25 citing the data on supplies to the refining plants. Mined gold output rose 15.1% to 14.11 tonnes, while by-product gold output increased 40% to 1.26 tonnes, and gold scrap production fell 0.8% to 2.47 tonnes. Russia’s silver output decreased 32.1% to 66,500 tonnes in 2018. Primary silver production fell 9% to 32.47 tonnes, while by-product silver output increased 15.2% to 20.53 tonnes, and production of silver scrap fell 70% to 13.5 tonnes.
9.1.12 Transport sector news
● Trains
The initial leg of a larger high-speed rail line linking Moscow to Nizhny Novgorod has been authorized by PM Dmitry Medvedev and currently awaits final approval from Putin before proceeding. Russian has refused to slacken control over concessions law and project access for Chinese contractors that killed hopes of a joint Belt and Road project with China. Given that the project is very unlikely to make money, private sector investments are likely to come from businessmen looking to keep the Presidential Administration and Putin happy. But Putin could delay. This specific HSR route is a bellwether for rail spending priorities, especially since the proposed corridor centred on Chelyabinsk and Yekaterinburg makes more economic sense. The route is expected to cost RUB621.5bn ($9.5bn), RUB200bn rubles ($3bn) of, which RZhD and the state budget will finance. Private investors will cover the rest. MinFin is firmly opposed to the project on grounds that RZhD is grossly exaggerating expected growth in passenger flows, which are unlikely to create enough revenues to justify the project. Russian firms partnered with the China Railway Eryuan Engineering Group in a consortium when planning the project. It's expected that Putin will quickly authorize the project next Wednesday after meeting with RZhD head Oleg Belozerov if the money and contractors are lined up.
Russian Railways (RZD) and its subsidiaries plan to move into a consolidated head-quarter complex, or RZD-City to be built by the Rizhsky Train Station in Moscow for about RUB72bn ($1.1bn), Vedomosti daily said on March 20 citing unnamed sources. The railway monopoly plans to invest at least 10% in the HQs, the rest to be raised from banks and developers. The total area of RZD-City is reportedly planned at 0.45mn square meters, which would make it one of the largest business complexes in the Russian capital and take at least five years to build. The rationale behind the new office is cutting operational costs, improving
102 RUSSIA Country Report April 2019 www.intellinews.com