30 Mar Kinross to sell all Russian assets after entering negotiations with unnamed party
Canada’s Kinross Gold Corp is talking to an unnamed third party mining company with regards to the acquisition of all of its Russian assets, as the gold giant seeks to fall in line with Western sanctions on Russia amid the invasion of Ukraine.
However, Kinross noted in a media release yesterday afternoon that any potential divestiture or change of control would have to receive Russian government approval.
The TSX and NYSE-listed company’s Russian subsidiaries will continue to operate the Kupol mine and other assets, while Kinross will continue to manage and mitigate the environmental impacts of its Russian operations, as part of the exclusivity agreement.
Kinross said it would continue to prioritise the well-being its 2,000 plus employees in the country as it develops a transition plan. During the transition, Kinross will not benefit financially from its Russian operations. Current activities will be funded through resources already in-country, with no additional investment required by the parent company.
Earlier this month, Kinross said it would suspend its Russian operations this month, including Kupol and the Udinsk development project. The firm expects to treat its Russian business as an asset held for sale from an accounting perspective until a change of control is completed.
This potential divestment follows Rio Tinto’s announcement of it cutting all ties with Russian businesses, while Glencore sold its stake in Russia’s Russneft in February.