A UK court has struck down a $5.6 billion lawsuit filed against Russian billionaire Roman Abramovich by his former partner Boris Berezovsky. The case recalls the 1990s disputes over Russia’s natural resources.

Judge Elizabeth Gloster ruled that Russian executive Roman Abramovich, the billionaire owner of the Chelsea Football Club, will not pay the huge sum to the self-exiled Russian tycoon Boris Berezovsky.

The judge ruled that almost every aspect of the case was in dispute, RT producer Valentina Shpakova tweeted from the courtroom.

Berezovsky appeared disappointed and slightly nervous, Shpakova reported. Abramovich did not attend the verdict announcement. His team of lawyers merely smiled as the judge read out her lengthy statement.

Judge Elizabeth Gloster said that the 45-year-old Abramovich was the more reliable witness, with the 66-year-old Boris Berezovsky acting “deluded” while testifying and providing unreliable evidence. The case heavily depended on the oral evidence so the court needed to have a high degree of confidence in its quality, explained the judge.

“I found Mr. Berezovsky an unimpressive, and inherently unreliable witness who regarded truth as a transitory, flexible concept,” Reuters quoted Judge Gloster as saying.

Berezovsky remained expressionless, and did not visibly react to the remark.

“At times the evidence which he gave was deliberately dishonest; sometimes he was clearly making his evidence up as he went along in response to the perceived difficulty in answering the questions in a manner consistent with his case,” the Judge told the courtroom.

The judge also rejected Berezovsky’s claim that Abramovich had provided false testimony.

Upon losing the legal battle in London, Berezovsky claimed that “everything Abramovich presented in court was a lie.”

Berezovsky’s lawyer said the London High Court did not understand the nuances of doing business in Russia.

Berezovsky says he is “totally disappointed” and “surprised” by the verdict, adding his confidence in English justice has been undermined. Still he claimed he had “no regrets about bringing the case.”

“I don’t understand what happened,” he told journalists on leaving the courtroom. “But a legal decision cannot rewrite history.”

Berezovsky is considering whether to appeal the verdict. Experts believe it may be worth his time to contest the decision: “The sums are so great: $5 billion or more. It is worthwhile, his appealing,” John Flood, Professor of Law at Westminster University told RT.

“And that might lead to a settlement talk. But the trouble with Russian cases is that there is no move towards settlement. They keep entrenched in polar opposite positions and just want to fight it out,” he said.

Meanwhile, Abramovich’s defense team expressed satisfaction with the ruling: “We are pleased to hear the judge describing Mr. Abramovich as a truthful and honest witness.”

Source: Rt.com

The world’s largest aluminum producer Rusal has completed a deal with the leading Export-Import Bank of China to develop a $850 million greenfield project in Eastern Siberia.

The agreement was signed by Rusal’s First Deputy CEO Vladislav Solovyev and China Eximbank Vice President Liange Liu.

Rusal and China Eximbank are going to finance the construction of a new anode factory in the Irkutsk Region. Anodes are used in the electrolysis process to produce aluminum.

The plant will supply Rusal’s aluminum smelters in Eastern Siberia which are able to meet China’s growing demand for aluminum, Rusal said in a statement. With the new plant located close to its key consumers Rusal plans to shorten the supply chain and to cut costs.

Rusal needs to reduce costs this year due to the falling prices. Aluminum prices ended at 18-month lows last year on concerns about weakening global demand for the metal.

This forced Rusal as well as other producers to cut output by about 1.3 million tonnes of since December 2011.

Meanwhile Rusal is interested in boosting cooperation with China hoping China’s consumption would help to recover the aluminum market by 2013, if it also cuts production.

“All producers should take responsibility for decisions on production volumes and more actively cut unprofitable production,” Oleg Mukhamedshin, Rusal’s  head of equity and corporate development told Reuters. ”This particularly suggests China.”

Source: rt.com

Norilsk Nickel said on Wednesday its profit attributable to shareholders rose to $3.6 billion in 2011 from $3.3 billion in 2010. The company expected to report a net profit of around $5 billion for 2011, broadly flat on the previous year, Norilsk chief executive Vladimir Strzhalkovsky said in January.

Its revenues rose 11 percent to $14.1 billion last year. The board of Norilsk’s earlier recommended a dividend of 196 roubles ($5.94) per share for 2011, up 8.9 percent on last year. ($1 = 32.9987 Russian roubles)

In Australia, Norilsk Nickel owns:

• Norilsk Nickel Cawse, a laterite nickel ore production and leaching facility;
• Black Swan, Lake Johnston and Waterloo, all sulfide nickel producers;
• Honeymoon Well, a major sulfide nickel ore exploration project.

In Botswana, Norilsk Nickel holds an 85% interest in Tati Nickel Mining Company, a sulfide nickel producer.

The Group owns Norilsk Nickel Harjavalta, the only nickel refining plant in Finland.

In South Africa, the Group holds a 50% interest in the Nkomati nickel mine, a joint venture with African Rainbow Minerals (ARM).

“With production now returning to our forecast rates we anticipate a strong second half to the year,” Nikolai Zelenski, chief executive officer, said in a statement.

The company aims to achieve production of 800,000-850,000 gold equivalent ounces in 2012 and wants to increase output to 1 million gold equivalent ounces in 2013 from 754,000 ounces in 2011.

In April gold output fell 10 percent to 156,200 troy ounces due to ”short-term factors,” resulting in a 15 percent drop in EBITDA to $114 million.

First Quarter Financial Highlights

• Average realised gold price of US$1,689 per ounce, up 20% (Q1 2011: US$ 1,403)
• Production of 156.2 koz down 10.2% (Q1 2011: 173.9 koz)
• Revenue of US$264m, up 8% (Q1 2011: US$244m)
• EBITDA of US$ 114 m, down 15% (Q1 2011: US$135m)
• EBITDA margin of 43% (Q1 2011: 55%)
• Net income of to US$ 60m down 30% (Q1 2011: US$ 85 m)
• Cash outflow from operating activities of US$ 19 m (Q1 2011: cash inflow US$: 80 m)

Corporate Developments

• Bissa project construction in Burkina Faso is within budget and progressing rapidly with engineering works mostly complete; on track to deliver first gold in H1 2013.
• Gross project in Russia on track to complete pre-feasibility study in May/June 2012.
• Wardell Armstrong report into Nordgold reserves completed in the quarter showed Combined JORC and CIM Code Compliant Proved and Probable Ore Reserves of 12.7 Moz, up 54% from 8.2 Moz in June 2011.
• Nordgold maintains 2012 production forecast range of 800-850 thousand gold equivalent ounces

Nikolai Zelenski, CEO of Nordgold, commented: “As we previously disclosed in our recent Q1 Production Report, first quarter production was impacted by mine-specific issues which have since been identified and largely fixed.”

FULL REPORT: [ nordgold.com ]

TORONTO — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick”) announced the sale of its entire shareholding of approximately 20.4% in Highland Gold Mining Limited (“Highland”), the AIM-quoted Russian gold producer, consisting of approximately 66.2 million ordinary shares at a price of 120 pence per share for total gross proceeds of approximately $130 million. The shares were placed primarily with new and existing institutional shareholders of Highland.

On February 13, 2012 Highland announced that Barrick had determined upon review that its shareholding in Highland was non-core to its business operations and strategy and that it intended to divest its shareholding in Highland in an orderly process which would deliver proper value to Barrick, while supporting the interests and aims of Highland and its shareholders.

HSBC Bank plc (“HSBC”) acted as Barrick’s sole financial advisor and joint bookrunner in the sale of its entire shareholding in Highland with Numis Securities Limited (“Numis”) and Troika Dialog (UK) Limited (“Troika”) acting as joint bookrunners.

Barrick’s vision is to be the world’s best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

This announcement is being issued by Barrick Gold Corporation and is the sole responsibility of Barrick Gold Corporation. Each of HSBC, Numis and Troika is acting for Barrick Gold Corporation in connection with the sale of its entire shareholding in Highland Gold Mining Limited and will not be responsible to anyone other than Barrick Gold Corporation for providing the protections offered to its clients nor for providing advice in relation to the above transaction

The Company holds the world’s third largest gold reserves with about 91 million ounces of proven and probable gold reserves underpinning the Polyus Gold’s sector-leading production growth profile (8% increase in gold production in 2011 to 2010).

The Company’s principal operations are located in Russia’s most prolific gold mining provinces in Eastern Siberia and the Far East and in Kazakhstan and include 9 operating mines, alluvial operations and several advanced development projects.

Highlights

• Refined gold production up by 27% year-on-year to 328 thousand ounces (first quarter of 2011: 258 thousand ounces)
• Olimpiada gold output up by 42% year-on-year as a result of improved recovery rates
• Verninskoye ramp up continuing as planned: all the equipment has arrived in Russia, and installation is well underway
• Natalka construction on track with 85 items of construction equipment delivered on site and 50 items of mining equipment procured
• A significant increase in the resource base reaffirming the Company’s growth strategy

German Pikhoya, Chief Executive Officer of Polyus Gold, commented:

“I am pleased to announce yet another impressive set of results delivered by Polyus Gold on the back of improved performance by our established operations at Olimpiada and Kuranakh, as well as a steadily increasing contribution from Blagodatnoye. With a 27% organic year-on-year increase in production and good progress at our development projects, supported by a substantial increase in mineral base, Polyus Gold remains well positioned to continue to deliver on its growth plans.”

Source: [ polyusgold.com ]

Source: [ polyusgold.com ]

Headquartered in London, Polyus Gold’s operating mines and development/exploration projects are located in 5 major gold mining regions of Russia – the Krasnoyarsk Territory, the Irkutsk, Magadan, Amur Regions, the Republic of Sakha (Yakutia), as well as in the Republic of Kazakhstan, Romania and Kyrgyzstan.

In 2010 Polyus Gold production in Russia totalled 1.386 m oz.

The company’s P&P reserves (JORC) – 81.2 m oz.

Polyus Gold reserves according to Russian classification as listed by the State Committee of Reserves (GKZ Rosnedra) at January 1, 2010 amounted to 109.4 m oz. of balance В+С1+С2 reserves.

In Russia Polyus Gold shares are traded on MICEX and RTS. In the UK Polyus Gold ADRs are listed and traded on the LSE. Polyus Gold ADRs are also traded in the over-the-counter market in the United States.

Polyus Gold is an innovative company that relies on technology to boost competitive advantages. We implement the best standards of corporate governance to position Polyus as an attractive investment.

It puts special responsibility on Polyus Gold as the company that facilitates sustainable development of the gold producing regions. The company abides by the principles of absolute financial transparency, fully pays its dues and taxes both to federal and regional budgets, and supports sports, education and culture.

Russia’s biggest precious metals producer Polyus Gold has seen its shares skyrocket on Friday and continue on Monday. But the reasons for the sudden attractiveness of the company’s shares left many investors wondering.