KOLYMA PRODUCED LESS GOLD

As of 20 July, gold mining companies of Magadan, Yakutia and Chukotka supplied 9,785 kg of gold to the Kolymsky gold refinery, which is 1,322 kg less than a year ago.

There are 104 gold producers in Magadan, 9 in Yakutia and 5 on Chukotka. By data of Magadan Oblast's Subsurface Use Department, gold production in Kolyma region has amounted to 9,733.7 kg of gold by 20 July, of which 6,065.5 kg was ore gold and 3,668.2 kg was placer gold (1,494,1 kg less than in 2003). - Yulia PROKHOROVA.

ENERGY PROVIDER SUMS UP RESULTS

Far Eastern Energy Managing Company (FEEMC) director general Viktor Myasnik declared during his visit to Kamchatka and Sakhalin that FEEMC's advent has resulted in positive changes in local energy systems.

"ZR" FILE: FEEMC, 100% in which belongs to RAO UES of Russia, was established in July 2001 with a charter capital of 150,000 rubles. It performs as a sole executive body for five Far Eastern energy providers - Dalenergo, LuTEC, Kamchatskenergo, Geotherm and Sakhalinenergo.

Kamchatskenergo reached a breakeven level and Sakhalinenergo earned 40 million rubles in net profit versus 127 million of loss a year before, said Viktor Myasnik. Geotherm's performance was assessed also positively, but FEEMC has no sources for repayment of 3.6 billion rubles borrowed by the government for construction of this power plant.

"A meeting in RAO UES of Russia on 5 December to be chaired by Anatoly Chubais will consider alternatives to solve this problem. Our proposal is to convert the debt into Geotherm's stocks. Otherwise, this debt will have to be included in Kamchatskenergo's electricity tariffs. This would be a very heavy burden, but I believe that this will not happen," Viktor Myasnik said.

"ZR" FILE: OAO Geotherm's charter capital is 486,300,000 rubles. 71.61% belongs to RAO UES of Russia, 12.96% to the former Ministry of Proprietary Relationships, 8.23% to Kamchatskenergo and 7.2% to Kamchatka's state property management committee. Geotherm operates Mutnovskaya geothermal power plant.

Viktor Myasnik also declared that Kamchatskenergo's principal debt of 4 billion rubles to Woodbridge Trading Ltd. (England) will be cleared off through RAO UES of Russia before the end of 2004.

"ZR" NOTE: Woodbridge Trading Ltd. bought Kamchatskenergo's debts to foreign suppliers of oil products to the peninsula in 1996-98. Supplies were executed on a payment deferral basis. Due to the August 1998 crisis and the fall of the ruble, Kamchatskenergo was unable to pay $85.9 million of debt to its partners. Woodbridge requires that both the principal debt and deferral interest on it in the amount of $108.2 million should be paid.

Viktor Myasnik pointed out at positive trends in Sakhalinenergo's performance. It carries out a cost reduction programme and intends to restructure a 450-million-ruble debt to Sakhalinugol for coal deliveries.

"This debt is its main concern. Sakhalinenergo has no sources for repayment of this debt. A possible alternative could be an agreement with the coal company on restructuring this debt for 5-6 years," Viktor Myasnik said.

By his words, FEEMC considers taking over management of the Noglikskaya power plant on Sakhalin, which faces bankruptcy procedures.

"I think we will convert Sakhalin GRES power plant to gas by 2007. All other plants, including Sakhalin TETs-1, could be converted to gas by 2011. About 500 million rubles will be needed for this, and we consider alternatives for drawing loans for these projects. We hope on cooperation with Vneshtorgbank, Bank for Regional Development and Alfa-bank, who are ready to provide us loans for 3-4 years." - Oleg KLIMENKO.

EURASHOLDING BROUGHT CARGO FOR NAKHODKA PORT

Nakhodka commercial sea port (NCSP), member of vertically integrated metallurgical group "EurasHolding," handled 4.3 million tons of cargo in the first half of this year (+33% on same period a year before).

Spokesman for Eurasholding noted that the bulk of cargo turnover was steel (about 3 million tons) and wood (727,000 tons). The turnover grew mainly due to a rise of 516,000 tons in steel exports.

The port exported more steel from Eurasholding's plants - 792,000 tons from West Siberian iron and steel plant (60% more), 844,000 tons (28%) from Nizhnetagilsky plant and 529,000 tons (+8%) from Novokuznetsky plant. - Olga DOBROLYUBOVA.

VLADIVOSTOK AIR OPENED NEW FLIGHT TO TIANJIN

The new regular international flight from Vladivostok to Tianjin in China was opened on 18 July.

As spokesman for VladAir said, the company has been working on Chinese routes since 1995. It is member of IATA and International Organization of Air Carriers.

Tianjin has become the fifth airport in China connected by regular flights with Vladivostok. Tianjin is a large port city directly subordinated to the central government. It gas a population of over 11 million and located at a junction of transport routes in the coast of Bo Hai Bay, 70 km from Beijing. - Yulia PROKHOROVA.

MAYORAL ELECTIONS IN MAGADAN APPOINTED FOR 10 OCTOBER

The decision to hold mayoral elections ahead of schedule on 10 October was made by the territorial electoral commission in Magadan.

Former mayor Nikolai Karpenko resigned on 6 July after appointed head of the control department in the office of the presidential envoy in the Southern Federal District. - Yury ROGOV.