Minmet looks to gold production

EXPLORATION company Minmet, through its 40 per cent stake in the Zabaikalzoloto Joint Stock Company, has become a "major influence in the Russian resources sector", chairman Mr Jeremy Metcalfe has told the company's annual general meeting.

"We are now realistically in sight of moving from exploration to actual production," he told shareholders.

A Minmet subsidiary, Zabaikal Mining Corporation Ltd, has been formed to control the company's Russian assets, Mr Metcalfe said.

Minmet director, Mr Peter Earl said of Zabaikalzoloto. "It is still a significant producer of gold. The importance of this investment should not be minimised."

Zabaikalzoloto has a development programme which aims to increase annual production to 3.5 tonnes.

In reply to a question from a shareholder, Mr Earl confirmed that the investors based in La Paz, Bolivia, with which Minmet have formed a joint venture, are cousins of the Bolivian President, Mr Gonzalo Sanchez de Lozaela.

A subsidiary, Minmet Bolivia Ltd, was formed "in association with two leading Bolivian families with close links to the country's important natural resources industries", the chairman's report disclosed. The joint venture was set up to acquire and develop gold mining concessions in Bolivia.

Mr Earl said Mr Sanchez de Lozaela had one year left in office, and could not go forward for a further term.