Russia’s Nordgold injects another $70m into Guinea mine

Russian miner Nordgold (LON:NORD) invested $70 million last year in its Guinea-based gold mine, $22 million more than the total allocated in 2017, the company said on Monday.

Nordgold, which spun off of Russian steelmaker Severstal in 2012, said the funds allowed it to both, extend Lefa mine’s life and improve efficiencies at the operation.

The gold producer, which acquired the mine in 2010, said it since has invested almost $1 billion in the West Africa’s nation. Additionally, Nordgold has paid $180 million in corporate taxes and royalties from 2011 to 2018.

Nordgold acquired the Lefa mine in 2010 and has already invested roughly $1 billion in Guinea.

“We remain committed to Guinea and to driving performance at the Lefa mine,” the operation’s acting manager, Alejandro Rodriguez, said in the statement. “This intensive investment programme will put us in the best position to maximise the value of this major asset.”

This year, Nordgold estimates it would increase its investment in Lefa by 15% to about $80 million.

Lefa is one of the largest gold mines in Guinea, employing almost 1,200 people directly, as well providing over 800 indirect jobs.

The operation has invested significantly to improve the provision of local health and education services, including support in the fight against Ebola, as well as the creation of new medical facilities and some 40 schools.

Nordgold, which acquired many of its major assets during the 2008-2009 financial crisis, also operates in Russia, Kazakhstan and Burkina Faso.

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