FACTBOX-Russian gold mining expansions

MOSCOW, Feb 7 (Reuters) - Russia's leading gold miners have
unveiled ambitious plans to expand reserves and production.

The Russian Gold Industrialists Union expects 2008 to show
the first annual increase in production after five consecutive
years of decline. [ID:nL29112933]

The union forecasts Russian gold output will rise to 225
tonnes (7.2 million ounces) by 2015. Production in 2007 fell 0.9
percent year-on-year to 162.78 tonnes (5.23 million ounces).

Russia accounts for about 6.6 percent of world gold output
and ranked fifth in terms of production last year. It has
reserves second only to South Africa's.

The country's biggest gold miner, Polyus Gold (PLZL.MM),
accounts for nearly a quarter of Russia's production and ranks
fourth in the world in terms of reserves.

To see a recent ANALYSIS on Russia's gold sector, please
double-click on [ID:nL30566257].

Following is a list of planned expansions by the country's
largest gold producers.

POLYUS GOLD (PLZL.MM) (PLZLq.L)

Market capitalisation as of Feb. 7: $10.2 billion

Main owners: Mikhail Prokhorov and Vladimir Potanin, who are
engaged in a protracted division of their varied assets

2007 output: 1.215 million ounces (23 percent of Russia's
total)

2006 output: 1.215 million ounces (23 percent)

Long-term forecast: 3.9 million ounces by 2015

Operating mines: Olimpiada (Krasnoyarsk region), Kuranakh
(Yakutia), Zapadnoye (Irkutsk), alluvial deposits in Irkutsk
region

Development projects include: Blagodatnoye, Titimukhta,
Olenii, Tyrada (Krasnoyarsk), Verninskoye, Chertovo Koryto
(Irkutsk), Natalka (Magadan), Nezhdaninskoye (Yakutia)

* Polyus is the world's fourth-largest gold company in terms
of reserves. An audit by MICON International last year said the
company had proved and probable reserves of 68.6 million ounces.

PETER HAMBRO MINING (POG.L)

Market capitalisation as of Feb. 7: $2.2 billion

2007 output: 297,300 ounces (5.6 percent of Russia's total)

2006 output: 261,000 ounces (4.9 percent)

Long-term forecast: 900,000 ounces by 2010 and more than 1
million ounces by 2011

Operating mines: Pokrovsky, Pioneer (Amur), Omchak (joint
venture in Magadan), several alluvial deposits

Development projects include: Malomir (Amur), Novogodnee
Monto, Toupugol-Khanmeishorsky (Yamal-Nenets).

POLYMETAL (PMTLq.L) (PMTL.MM)

Market capitalisation as of Feb. 7: $2.6 billion

Main owner: Suleiman Kerimov

2007 output: 242,000 ounces (4.6 percent of Russia's total)

2006 output: 256,000 ounces (4.8 percent)

Forecast 2008 output: 250,000-270,000 ounces

Long-term forecast: 400,000 ounces by 2010

Operating mines: Dukat, Lunnoye (Magadan), Vorontsovskoye
(Sverdlovsk), Khakanja (Khabarovsk)

Development projects include: Albazino, Khakarinskaya
(Khabarovsk), Dukat Ore Field, Kubaka (Magadan), strategic
alliance with AngloGold Ashanti Ltd (ANGJ.J) (various regions),
Rudnichny, Galkinsky (Sverdlovsk), Anenskoye (Krasnoyarsk)

* Polymetal is also Russia's largest silver miner.

YUZHURALZOLOTO

Unlisted. The name translates as South Urals Gold

2007 output: 158,900 ounces (3.0 percent of Russia's total)

2006 output: 127,700 ounces (2.4 percent)

Operating mines: Svetlinskoye, Bereznyakovskoye,
Kochkarskoye, West Kurasan, South Kurasan (all Chelyabinsk),
Priisk Drazhny (Krasnoyarsk), Kommunarovsky (Khakassia), Darasun
(Chita).

HIGHLAND GOLD MINING LTD (HGM.L)

Market capitalisation as of Feb. 7: $1.3 billion

Shareholders include: Millhouse LLC (the investment vehicle
of Roman Abramovich - 40 percent), Barrick Gold Corp (ABX.TO)
(approximately 20 percent)

2007 output: 156,490 ounces (3.0 percent of Russia's total)

2006 output: 167,544 ounces (3.2 percent)

Long-term forecast: more than 200,000 ounces by 2009

Operating mine: Mnogovershinnoye (Khabarovsk)

Development projects include: Mayskoye (Chukotka),
Taseyevskoye, Novoshirokinskoye* (Chita)

* Novoshirokinsoye is a polymetallic deposit being developed
jointly with Kazzinc, a Kazakhstan-based zinc producer owned by
Switzerland-based trader Glencore.

KINROSS GOLD CORP (K.TO)

Market capitalisation as of Feb. 7: $13.0 billion

Toronto-based Kinross could become Russia's second-largest
gold miner when it starts its Kupol project in Chukotka. Kupol
is due to start in mid-2008 and is forecast to produce about
550,000 ounces of gold per year from 2009. The company also owns
the Julietta mine in Magadan region, which is already among
Russia's top ten producers. Kinross acquired the assets through
its acquisition of Bema Gold Corp.

BURYATZOLOTO (BRZL.RTS)

Market capitalisation as of Feb. 7: $142.7 million

2006 output: 150,173 ounces (Zun Holba mine 70,107 ounces,
Irokinda mine 80,066 ounces)

Forecast 2007 output: 145,400 ounces (Zun Holba mine 69,100
ounces, Irokinda mine 76,300 ounces)

* Buryatzoloto is owned 85 percent by Canada's High River
Gold Mines Ltd (HRG.TO) and operates the Zun Holba and Irokinda
mines in Buryatia. Separately, High River Gold also owns 99
percent of the Berezitovy mine in Amur region as well as a gold
mine in Burkina Faso and the Prognoz silver deposit in Russia's
Yakutia region.

GV GOLD

Unlisted. Plans IPO by autumn 2008 at earliest

2007 output: 102,900 ounces (2.0 percent of Russia's total)

2006 output: 86,967 ounces (1.6 percent)

Forecast 2008 output: 118,600 ounces

Operating mine: Golets Vysochaishy (Irkutsk).

AMUR

Unlisted. Majority owned by Moscow-based Alliance Group.

2007 output: 100,182 ounces (1.9 percent of Russia's total)

2006 output: 86,839 ounces (1.6 percent)

SEVERSTAL (CHMF.MM) (CHMFq.L)

Market capitalisation as of Feb. 7: $22.5 billion

Main owner: Alexei Mordashov

Severstal is Russia's largest steel maker including foreign
assets. The company last year acquired Celtic Resources Plc and
several Russian gold fields. Mordashov said in November he plans
to build a gold-mining company that could become Russia's third-
or fourth-largest and could be spun off within five years.

Source: company documents, Reuters data.

(Compiled by Robin Paxton)