In July 2003, Peter Hambro Mining Plc launched, together with the Russian companies Susumanzoloto and Shkolnoye, ‘Omchak Gold Mining Company’, which is a co-owner of Nelkobazoloto and Berelekh Mining Company, which produces 80,000+ tonnes of gold per annum in the Magadan region.  The operations held in the Omchak Joint Venture are located within the Yana-Kolyma gold-bearing belt, the largest metallogenic district in Northeast Asia.

The Magadan region, like the Amur region, has been an extremely prolific precious metals province, with production of over 80 million ounces of gold from alluvial and hard-rock mines since the 1930s. Thanks to its long mining legacy, the infrastructure of the Magadan region is well established. Extensive all weather roads link the mining operations to local towns and there is both electricity and coal from local suppliers. The electricity is mainly generated from the upper Kolyma River hydro-electric station and from coal mined near Susuman town, as well as from fire heating boilers. Both operations within the Omchak Joint Venture are now well established and benefit from competent and experienced management teams.