Russia’s Nordgold Boosts Gold Mining Resources in Western Africa via Lefa

Lefa’s satellite mining site and its Diguili deposit, is now being officially mined by Russian gold miner Nordgold, which acquired 85% ownership in 2010. Norgold today, is known as one of Guinea, Africa’s top contributors to the country’s social and economic development. The Russian company is owned by Alexei Mordashov along with his sons Nikita and Krill, while the Lefa mine in Western Africa was originally owned by Société Minière de Dinguiraye.

Since acquiring majority ownership, Nordgold has been doing exploration activities in order to prolong the mine’s lifespan. In March 2021, Nordgold was able to increase the Diguili deposit’s estimated gold reserves from 78,000 ounces to 138,000 ounces.

According to Nordgold, the mining company’s goal is to expand their reserve base and resources through selective acquisition of high value projects, and organic growth. They mentioned that acquiring the Lefa mine in 2010 was very much in line with their strategy. COO Louw Smith shared that the Diguili deposit was actually spotted by their exploration team, which created a big impact on the company’s overall mining performance.

Overview of Nordgold’s 5-Year Plan

Nordgold estimates that for the next five years, they will be able to boost gold production by around 20%. They plan to achieve this through the other mines they own; four are located in Russia, one in Kazakhstan, three in Burkina Faso, which like Guinea, is also located in Western Africa.

This mining giant also has plans to reconnect with the London Stock Exchange after leaving the world’s oldest reading market in 2017. On the other hand, Norgold’s closest competitor, Newmont, which is currently the largest gold miner in the world, is expected to remain unchanged in the next 4 years.