Russia Can Halt Development of Mines, Minister Says (Update1)

By Yuriy Humber

Jan. 27 (Bloomberg) -- Russia has the power to stop foreign companies developing “strategic” deposits, Natural Resources Minister Yuri Trutnev told Kinross Gold Corp. Chief Executive Officer Tye Burt in a meeting today, according to the ministry.

“This doesn’t mean the power will be exercised,” Trutnev said in a statement e-mailed by the ministry today.

The minister and Burt discussed the Canadian company’s plans to develop the Kupol gold field and a venture with OAO Polyus Gold to mine Siberia’s Nezhdaninskoye deposit, the statement said.

Russia last year passed a law that limits the holding of a foreign company in developments of Russia’s biggest deposits of oil, natural gas, gold and other minerals. Kupol, which is 75 percent owned by Kinross, is exempt from the legislation because it was acquired before the law came into effect.

Fields with more than 50 metric tons of gold are considered strategic and must be controlled by Russian companies.

To contact the reporter on this story: Yuriy Humber in Moscow at yhumber@bloomberg.net