Petropavlovsk eyes 2010 gold growth

Russian gold miner Petropavlovsk has said it is on track to produce between 670,000 oz and 760,000 oz this year, at least 38% more than in 2009, after a “transitional” first quarter.

The company, Russia’s third-largest gold miner, said in a statement first-quarter production fell 37% year-on-year as it processed lower ore grades. Output would be boosted in the second half of the year by the launch of a new deposit. Petropavlovsk chairman Peter Hambro said first-quarter output was in line with forecasts and reflected a transitional period in development of the company’s mines.

Gold output in Russia, where reserves are second only to South Africa’s, fell 7.9% in the first quarter of 2010. Output is expected to rise significantly over the next few years as new deposits come on stream in Siberia and Russia’s Far East.