OREANDA-NEWS Joint stock company "Mine "Western-Keys" and China National Gold group Corporation (CNGC) in the framework of the meeting of the Russian-Chinese Subcommittee on cooperation in the field of industry signed on Friday contract documents for the transition to the practical implementation of the project of development of the key gold Deposit.

According to the signed documents, CNGC acquires 70% of the shares of JSC "Western-Klyuchi mine" (from the private Indian investment SUN Group, which operates in India, Russia, CIS, Asian countries and on the African continent), which owns a license for the development of the Klyuchevsky gold Deposit.

"This signing is an important stage in the implementation of the joint investment project. The consortium members' efforts will be aimed at exploration, formation and development of an integrated complex for mining and processing of minerals. We expect that the investor will start the practical implementation of the project in the very near future",-said the Minister of Industry and Trade of the Russian Federation Denis Manturov, whose words are quoted by the press service of the Ministry.

Investment from the Chinese side needs to be on the order of $420 million. Also, the project will invest in SUN Group investments will amount to an additional approximately $65 million, "the Annual production capacity will be about 6.5 tons of gold per year - this will give a powerful impetus to the economic development of Baikal region and will increase by 2020 the total production of the precious metal in the region of 40%," - said the Minister. Production of precious metals will be carried out on the territory of the Russian Federation.

The project will allow, according to the Ministry of Industry and Trade, to create more than 2.5 thousand job places, at least 50% of which will be occupied by citizens of Russia. The agreement also provides for measures to support Russian producers of mining and other auxiliary equipment. Thus, the share of Russian equipment will have to be at least 40% of the cost of all equipment. "This is the maximum possible proportion between domestic and foreign equipment, taking into account the range of equipment produced in the Russian Federation, necessary for the implementation of the project," Manturov stressed.

CNGC is a leading Chinese state-owned gold mining Corporation engaged in the extraction and processing of gold, silver, copper and molybdenum.

Earlier, Russian President Vladimir Putin signed a law on ratification of the agreement with the government of the people's Republic of China on cooperation in the implementation of the project of development of the Klyuchevsky gold Deposit in the TRANS-Baikal region.