MINING REFINING

State financing of gold exploration in the Russian Federation has almost halved

Tue Mar 26 2024

From 2012 to 2022, the total cost of the state for geological exploration (exploration) for gold mining collapsed by almost half and fell to 2.6 billion rubles per year. This is reported by the Vedomosti newspaper with reference to the report of the Central Scientific Research Geological Exploration Institute of Non-Ferrous and Precious Metals (CNIGRI).

The average cost of completed state contracts for exploration has increased by 7 percent over 11 years and reached the level of 311 million rubles. As specified in the CNIGRI, a significant part of the costs during exploration falls on the use of special mining equipment and the development of documentation. In addition, the funds go to the salary fund, as well as the purchase of raw materials for blasting operations.

Rosnedra stated that the main reasons for the increase in the cost of exploration were inflation and work in hard-to-reach areas. At the same time, in 2024, the financing of geological exploration may grow to 2.49 billion rubles. We are talking about the costs of early-stage geological exploration for gold, experts concluded.

Earlier, analysts at the international rating agency Fitch raised the forecast of world gold prices in 2024 to 1,9 thousand dollars per troy ounce. The previous assessment of experts implied an indicator at the level of 1.8 thousand. In 2025, according to their expectations, prices for the precious metal will average 1.8 thousand dollars.

Source: https://www.oreanda-news.com/