AngloGold and Polymetal formed partnership

The world number three gold producer AngloGold Ashanti has formed a strategic alliance with the Russian gold mining company Polymetal to explore and develop gold assets in Siberia and the Russian far east.

AngloGold and Polymetal plan to contribute two gold fields each to the initial capital of the new company that will be established by the end of 2007. AngloGold is providing assets that hold an exploration licence in Krasnoyarsk region. The company bought them from the British company Trans Siberian Gold, for 40 million dollars. Polymetal’s contribution, two exploration projects in Krasnoyarsk and Chita region, are valued at 16 million dollars. Along with them, Polymetal will pay an additional $12 million. Meanwhile Polymetal is getting ready for an Initial Public Offering and analysts think the deal with AngloGold will be a big plus. The alliance is the third strategic deal in the gold sector this year. Recently Norilsk Nickel signed similar agreements with BHP Billiton and Rio Tinto.