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Wednesday, 21st April 2004 (4515 views)

A leading fund manager has claimed Russia's gold sector has huge potential for big mining firms.<BR/><BR/>According to natural resources fund manager at Merrill Lynch, Richard Davis, the country's gold offers firms low cost production, with many gold producers already keen to invest.<BR/><BR/>Mr Davis told Forbes: "Over the last five or six years there's been a big reduction in the amount of money these mining companies spend on actually finding reserves. <BR/><BR/>"Some of them will have to buy ounces in the ground -- that could benefit the Russian gold mining industry. The Russian gold mining industry can only attract more investment as it's a growth sector," he added.<BR/><BR/>If mining companies did move towards Russia, gold output could increase to over 200 tonnes by 2009, bringing it level to China's current position as fourth largest producer.<BR/><BR/>Output reached 182 tonnes last year and had increased by approximately 30 per cent over the last five years.

 

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