Lenzoloto

Lenzoloto is one of the oldest gold producers in Russia whose history can be traced back to the second half of the XIX century when the Russian gold fever begun in Siberia.

Siberia’s largest gold company – the Lena Gold Mining Partnership – was established in 1885 by Irkutsk merchants Basnin and Katyshev. The company was able to set up many gold mines and build a strong infrastructure. The gold fever turned wild taiga into a booming industrial region.

In 1921 over 400 gold mines were nationalized and turned into a state company dubbed Lenzoloto. But revolution and the Civil War that followed it ruined the gold mining industry and infrastructure in Siberia. In search of a remedy the soviet government created a concession with British company Lena Goldfields Limited for 30 years. This proved to be wrong. The foreign partner developed only rich deposits and paid no attention to infrastructure maintenance. Some mines were even destroyed or flooded. Thus the concession was prematurely cancelled  in 1930.

Lenzoloto was transformed into a state trust and begun rebuilding the gold industry in the Bodaibo region. Again much harm was caused by the Stalin’s repressions. When the WWII started in 1941 remaining men were drafted into the army. They were replaced by women and teenagers who produced the much needed gold for the war effort. Their contribution to the victory was beyond any price. For this Lenzoloto received the Lenin’s Order, the highest state award of the USSR. Its 126 workers were also honored with various awards and medals.

In 1946 Lenzoloto received new impulse for development. New people began implementing new technologies for mechanized gold production. This allowed to reach the pre-war gold output by 1949. The process continued and more new high-capacity mining equipment (draglines and excavators) was brought to the mines. Gold production grew until 1990.

At the same time as placer deposits were developed Lenzoloto begun the construction of Sukhoi Log mine and ore processing plant to develop the Eurasia’s largest deposit – Sukhoi Log. But in 1991 the state cut financing and froze this project after investing $2.5 billion in total. Lenzoloto’s placer business was also affected by the general economic turmoil.

Now Lenzoloto is a joint stock company and undergoes structural reorganization. Its mines were set up subsidiaries that started operations anew. At the same time Lenzoloto as the head company restructured and begun paying off its debt. These measures allowed to resume production on 95% ogf previously suspended mines.

In 2003 Lenzoloto joined Polyus group which marks a new page in its history and provides solid grounds for the future development of the gold mining industry in Bodaibo region.