Gold Field's Future Becomes More Clear

Licenses for Sukhoi Log, by some reports the world's largest gold deposit, are still up for grabs according to Irkutsk government officials. However, Norilsk Nickel took a non-traditional step hoping to outrun the competition.

On March 1, the administration of the Irkutsk Region reported plans to sign an agreement on cooperation with Norilsk Nickel. Norilsk Nickel promised significant payments to the budget of the region should it win the tender for the right to develop the Sukhoi Log.

The Sukhoi Log gold deposit is located in the Irkutsk Region and is Eurasia's largest gold field with more than 1,000 tons of gold.

Experts say that in the first five years investments required for development of the deposit will exceed $1 billion. These investments will pay back no earlier than ten years.

In addiition to Norilsk Nickel, Polimetall, Basic Element, British Fleming Family & Partners and Canadian Barrick Gold already announced their interest in obtaining the license for the Sukhoi Log.