Trans-Siberian Gold locks in subsidised energy rate at Asacha mine

The AIM-traded firm noted that it benefitted from a reduced tariff of RUB 4.69 per kilowatt hour (6p) during 2019, which has led to significant cost savings.

It said the new agreement confirmed that Kamchatskenergo will continue to supply electricity at a reduced tariff of RUB 4.75 per kilowatt hour.

The programme of electricity subsidies supported a policy aimed at encouraging investment into the far east of Russia, and aiding economic growth in the region, following the implementation of incentive measures introduced by the Russian Government, the board explained.

Kamchatskenergo is a subsidiary of the RusHydro Group.

“We are pleased that Trans-Siberian Gold will benefit from the continued support of our local energy provider in 2020, significantly reducing our energy costs as we operate at the lower levels of the Asacha Gold Mine,” said chief executive officer Alexander Dorogov.

“Lower energy costs materially reduce the financial burden for companies operating in the far east of Russia, and these regional economic growth incentives reaffirm the attractiveness of the region for investment.”

At 1547 GMT, shares in Trans-Siberian Gold were up 4.82% at 87p.