According to a report by the Central Research Institute for Geological Prospecting of Non-Ferrous and Precious Metals (TsNIGRI), government spending on geological exploration for gold mining has decreased almost twofold between 2012 and 2022, amounting to 2.6 billion rubles per year. This is reported by Vedomosti.
At the same time, the average cost of contracts increased by 7% and amounted to 311 million rubles. One of the reasons for the rise in the cost of exploration is inflation, as well as work in hard-to-reach areas. According to the forecast, in 2024, government funding for exploration may amount to 2.49 billion rubles. The costs relate to work at the early stages of gold mining.
The state intends to attract private money for exploration of gold deposits, but there will be no large investments in new projects, says Sergei Kashuba, Chairman of the Union of Gold Producers of Russia. He explains this by the fact that with the current high prices for gold, it is more profitable for companies to develop existing projects than to open new ones.
Last week, gold prices reached a new historical record, exceeding the $2,200 mark per troy ounce on the exchange.