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The refinancing prevented

New measures to support the RIP do not take into account the specifics of the gold mining industry, but Minvostokrazvitiya promises to fix it

Since January 1, on the initiative of the Ministry of the Russian Federation for the Development of the Far East (Ministry of Eastern Development), new measures have been introduced to support regional investment projects (RIP). In accordance with them, RIP participants implementing projects on the territory of the Far Eastern and six regions of the Siberian federal districts, if they fulfill certain conditions (clause 2017, item 2, item 1 of the RF Tax Code, item 25.9 and 1, article 2-284.3 of the TC RF ) can take advantage of preferential taxation on both income tax and mineral extraction tax.

The refinancing prevented
These measures were adopted with great optimism by the majority of market participants, bewilderment arose only in gold mining. After all, according to the new mechanisms, so that the project receives tax breaks, its entire production cycle should occur on the territory of the region, and in the case of gold it is not always impossible.
"With respect to gold mining and processing, this includes refining. Well, as you know, refining in the Far East is not very developed, so this "tail" of the production chain ends outside the region with all the ensuing discussions with the tax authorities, "- said Pavel Grachev, CEO of PJSC Polyus at the session" Gold . A new page of the gold rush "in the framework of VEF-2017, held 6-7 September in Vladivostok.
At present, three refineries operate in the Far East and Siberia. Two of them are located in Krasnoyarsk Krai - JSC »Krasnoyarsk Non-Ferrous Metals Plant named after VN. Gulidova "and PJSC" Mining and Metallurgical Company "Norilsk Nickel", and one in Novosibirsk - OJSC "Novosibirsk Refinery Plant". The fourth enterprise, the Kolyma Refinery, put into operation in the summer of 1998, was declared bankrupt in 2015 and stopped.
Such large gold mining companies as GK "Gold of Kamchatka", GC "Petropavlovsk", according to their information, today are refining at the factories in Krasnoyarsk. GC "Petropavlovsk" also sends part of its products to refineries at OAO Prioksky Non-Ferrous Metals Plant in the city of Kasimov (Ryazan Region).
Soon in the region on the terms of RIP will begin to work two more projects related to goldsmiths. This gold-silver deposit Khakandzhinskoye in the Khabarovsk Territory, which is already put into operation, and located at the stage of design and exploration works of GOK at the Kumroch gold deposit, launched by the Bystrinsky Mining Company of the GK "Gold of Kamchatka".
Obviously, in this case, the load on the refining capacity of the region will increase substantially, because of what new projects will have to transport gold to refineries outside of Siberia and the Far East, and therefore - to lose the benefits granted.
At the same WEF session, Demis Eminov, deputy director of the department for attracting private investments of the Minsk region, promised to deal with this defect. "I think that in the autumn session, in the extreme case, at the beginning of spring, we will correct this situation and, if the government allows, we will make an amendment," he assured.
This intention of EastRussia was confirmed by the press service of the Ministry of Eastern Development, specifying that an amendment to the XXUMX and XXUMX sections of the Tax Code of the Russian Federation is being prepared now in cooperation with the Ministry of Finance, which will allow the gold mining company to consider the actual gold production as the “full production cycle of goods”. Consideration of these amendments is scheduled for the spring session of 1. “We expect that this measure will speed up the implementation of gold mining projects in the Far East and will attract new investors to the deposits in this region,” the Ministry of Eastern and Eastern Development noted.
However, market participants see alternative solutions to this problem. “For the development of the refining market, it is advisable to exclude this type of service from those that should be carried out in Siberia and the Far East as part of the RIP,” said Alexey Golubenko, General Director of the Gold Company of Kamchatka, EastRussia. In his opinion, this will increase the competitiveness of the market and will have a positive impact on the development of gold mining in the Far East.
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