Gold Miner Polymetal to Pull Out of Russia

One of the world’s leading gold and silver miners is splitting itself apart as a result of U.S. sanctions against Russian businesses following Moscow’s 2023 invasion of Ukraine. Polymetal International, which has been one of the top ten gold producers in the world, is selling off its Russian mining division to Russian firm Mangazeya Plus for $3.7 billion, including the assumption of debt. The Russian unit accounted for 70 percent of Polymetal’s revenues last year.

Polymetal had already moved its headquarters to Kazakhstan and delisted its shares from the London Stock Exchange. The company’s primary listing is now on Kazakhstan’s Astana International Exchange, with a secondary listing on the Moscow Exchange. The company, which produced 1.7 million ounces of gold in 2023, will now become a mid-sized gold miner, though still the second largest in Kazakhstan, with expected annual output of about 500,000 ounces. Polymetal Chief Executive Vitaly Nesis says he is setting a rebuilding target of producing one million ounces a year, and expects to also expand production of silver and copper.

Divestment of Polymetal’s Russian division is scheduled to close by the end of March.

Numerous multinational companies have pulled out of Russia since western nations imposed sanctions in response to the invasion of Ukraine. Far fewer major companies have been able to sell off their Russian assets.