China and Russia want to invest $1 billion in mining sector

Russia's Far East Development Fund is in talks with the China National Gold Group to establish a joint mining fund. This new joint venture aims to raise $1 billion in capital to invest in the Russian mining sector. The focus will be on the development of new gold mines, but investments will also be made in the extraction of other precious metals.

This new joint venture will start with a capital of $500 million, of which $100 million will be invested by both the Russian and Chinese sovereign wealth funds. The remaining $300 million will be raised from private investors. Alexey Chekunkov of the Russian investment fund gave a brief statement to the Asian Pacific Economic Cooperation Forum in Vietnam Bloomberg.

"We and the China National Gold Group will create an attractive platform where private investors can participate and make money. Our first goal will be to invest in projects in the areas of gold, precious metals and copper."

Russia and China invest in gold mining sector

China and Russia have long had the ambition to jointly invest in the gold mining sector. With the financial resources and technological knowledge of both countries, many more underground gold reserves can be tapped.

Russia was the third-largest gold producer last year with a mining output of 275 tonnes per year, while China has the largest mining output in the world with around 460 tonnes year-on-year. Both countries mainly produce for the domestic market, but Russia has also been exporting more and more gold to China lately.

China and Russia want to invest $1 billion in mining sector