OREANDA-NEWS. On April 02, 2008 OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia’s leading gold producer, announced the signing of the agreement on intentions with OJSC Federal HydroGeneration Company (RusHydro) regarding power supply from the existing Kolymskaya hydropower plant and Ust-Srednekanakaya hydropower plant currently under construction to future Natalka Mine in Magadan region, reported the press-centre of Polyus Gold.

The State Investment Committee of the Russian Federation on a meeting held in October last year reviewed the application for the state support of the Natalka investment project submitted by OJSC Matrosov Mine (a subsidiary of Polyus Gold). The application was recognized as corresponding to the goals and objectives of the Investment Fund.

Taking into account the recommendations of the Investment Committee, Polyus Gold has studied the possibilities of various power companies to participate in the project, basing on the principles of state-private partnership. That resulted in the agreement signed with RusHydro.

The agreement covers the preliminary arrangements regarding the terms of the power supply and specifies the technical solutions of the project.

RusHydro and Polyus Gold agreed to supply power to the facilities of the Natalka mine via the following routes: the high-voltage 220kV line Kolymskaya Powerplant – Substation Omchak; and, when the Ust-Srednekanskaya Powerstation and additional power lines infrastructure are launched - switchgear Ust-Srednekanskaya Powerplant – Substation Orotukan – switchgear Kolymskaya powerplant.

The 570 MW Ust-Srednekansk powerplant with average long-term production of 2,5 billion kW/hour is currently being constructed on the Kolyma river. The plant is to be launched in 2012.
The Natalka hard-rock gold deposit is located in Magadan region in the basin of Omchak river. The balance reserves of the deposit amount to 1449,5 tonnes (46,6 m oz) of the metal. The mine is to be launched in 2013.