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To: Alex who wrote (14138)	7/6/1998 7:46:00 PM
From: goldsnow	Respond to of 116764

Russian Magadan region wants direct gold exports 08:37 a.m. Jul 06, 1998 Eastern By Aleksandras Budrys MAGADAN, Russia, July 6 (Reuters) - Russia's far eastern region of Magadan expects to be the first gold producing region in the country to be permitted direct exports of the metal, deputy regional governor Vyacheslav Kobets said on Monday. ''We expect that the relevant decree will be signed (by Russian President Boris Yeltsin) soon, maybe even next week,'' Kobets told journalists at the official opening of Kolyma gold refinery, 76 km (50 miles) west of Magadan. He said that a presidential decree signed last July, which allowed commercial banks to export gold directly, also had a clause which gave the same permission to producers. ''But the procedure for exports by producers has yet to be established by another decree,'' Kobets said. He said he expected exports to be made either directly by the Kolyma gold refinery, or through the precious metals fund of Magadan region, created in 1997 for the purpose. The regional administration has a controlling stake in the refinery. Other shareholders are Rossiisky Kredit bank, and Kolyma Gold and Silver Company. The Vice President of Rossiisky Kredit, Andrei Kulikov, told Reuters that the bank had invested about $7 million to build the refinery. At present, the refinery can produce up to 30 tonnes of gold per year, with a purity of 99.99 percent. But after upgrading at the refinery, its capacity will increase to 40 to 50 tonnes of gold per year as well as 400-500 tonnes of silver, Kobets said. The refinery uses progressive new technology supplied by Intertech Corp of the U.S. Magadan Region is expected to increase its gold output to 30 tonnes in 1998 from 27 tonnes last year, Kobets said. Deputy Prime Minister Boris Nemtsov, visiting the Russian far east, said Magadan accounted for a quarter of Russia's total gold production. Kobets said talks were in progress with the neighbouring regions of Kamchatka, Amur and Chukotka for local producers to refine gold at Kolyma. Until now these areas have sent their gold to be refined elsewhere. Kobets added that Magadan region's most important goldfields were Natalkinskoye and Kubaka, with estimated reserves of, respectively, 250 tonnes and 150 tonnes. ((Moscow Newsroom, +7095 941-8520 moscow.newsroom+reuters.com)) Copyright 1998 Reuters Limited.