Kubaka, The Arctic Mining Challenge In The Russian Far East

Not since 1917 has a foreign company developed a standalone, grass roots gold mine in Russia. With. Russia's political changes of the late 1980s, development of mineral prospects once again beckons foreign investors. In 1990, Cyprus Amax began aggressively searching for such an opportunity. Early in 1997, production will commence at the Kubaka gold project located in the Russian Far East, near the Arctic Circle. The Kubaka project is a 1,750-tonne per day open-pit operation that will produce more than 300,000 ounces of gold per year. This paper discusses the challenges of locating such a prospect, doing business in Russia, developing supply lines, identifying work force capabilities, gaining government approvals, securing financing, arranging for gold sales and ultimately building a facility in this arctic region.