Over 13 years of operation in Russia means the Group has proved its ability to deliver targets on time and on budget. A significant portion of its success in bringing green field projects into producing operations can be attributed to the Group's in-house service teams, which employ highly qualified specialists using advanced technology to achieve top quality results at a low cost. The majority of the Group's exploration and development work is done by in-house consultancy. The in-house service companies currently employ approximately 1,490 people.
NPGF Regis (Exploration Company)
Due to the scale of the exploration work undertaken by the Group, the Group acquired a majority stake in the regional exploration company NPFG Regis in 2004. Regis has subsequently undertaken exploration at a number of the Group’s deposits and has entered into some contracting work for third parties. It performs a whole spectrum of geological exploration work from initial surveying to detailed delineation of ore bodies for final feasability studies.
Regis has a good reputation in the Russian Far East and employs approximately 119 people, including 92 qualified geologists, 12 specialist mining surveyors, 11 geophysical specialists and 4 computer modelling specialists. Regis uses qualified specialist geologists, GPS systems and complex modern drilling apparatus and excavation equipment in order to achieve high quality exploratory results whilst minimising costs. Regis owns and leases a fleet of drilling rigs, power units as well as transport and earth-moving vehicles and specialists from Regis also work alongside MC PHM's team of Micromine specialists and has a number of Micromine licences.
Kapstroi (Construction Company)
Kapstroi is a construction company set up in 2005 and operates at most of the Group's projects. There are 700 people working at the company, including a highly qualified team of technicians and engineers. Construction work with an estimated cost of over US$22m was carried out by Kapstroi in 2006. Kapstroi has state of the art equipment for construction works that includes over 250 vehicles and machines.
Further expansion of Kapstroi is anticipated in 2007 in order to cope with the demands of vigorous construction programmes at Malomir and Pioneer as well as other contract work.
MC PHM Engineering
MC PHM Engineering grew from a small group of experienced engineers who were originally involved in developing the Group's projects, on a contract basis, while working for a major Russian design institute. The in-house engineering company has expanded since its formation and now has 76 employees.
In 2006 this team was significantly strengthened by the 98% acquisition of OJSC Irgiredmet, the leading Russian geological consultancy. The new combined team work together to satisfy the Group's increasing demand for project design and research and development requirements.
PHM Laboratories
100% of sample analysis from all of the Group's deposits is carried out at the Group's own laboratories. Results are received within one month from taking the sample at the geological exploration site. The first of the Group's laboratories was constructed in 1999 at Pokrovskiy; since then the laboratory at Pokrovskiy has been extended and relocated to a new building, a central laboratory has been built in Blagoveschensk and laboratories have also been constructed at Tokur and in the Yamal region. The laboratory complex employs approximately 273 people, including 55 specialists and is equipped with modern apparatus. The complex has a total capacity of 36,000 samples a month using various methods. In 2006 the complex performed 210,000 analyses.
The head laboratory, located in Blagoveschensk provides complex analysis data for the Group and is equipped with advanced technology and a qualified team of sepcialists. The Labitnangi Laboratory (YamalZoloto) is capable of complex analysis of samples containing gold, silver, PGMs and various other non-ferrous metals. The laboratory currently has an installed capacity of 3,000 samples a month for assay sampling and 5,000 samples a month for semi-quantative spectrum analysis.
A provision has been made for bringing the Amur Region laboratories to a productivity of 300,000 samples a year in 2007 for assay samples. Expansion plans include the commissioning of a new geochemical department and the introduction of spectro-chemical gold analysis.
OJSC Irgiredmet
In 2006 the Group acquired c.98% of OJSC Irgiredmet, a leading research and scientific consulting company based in Irkutsk.
For many years Irgiredmet served as the primary state research centre for the gold mining industry in the former Soviet Union and subsequently in Russia, and played a central role in the development of the majority of Russian gold and diamond projects. Irgiredmet employs 285 staff, including 33 Doctors of science.
Irgiredmet provides the Group with mine planning and evaluation, infrastructure design, process and metallurgical test-work, bulk sampling, project evaluation and feasability studies. Its highly sophisticated resources and technological innovations provide the Group with invaluable additional technological and operating capabilities.
