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Ministry of Natural Resources of Russian Federation and the government of Magadan region have started checking up the fulfillment of the license agreement by "Serebro- Dukat" company. The agreement was on the exploration and mining of the world's largest Dukat silver deposit. This was reported by the committee of natural resources of the region administration. The main focus will be on the fulfillment of Russian law requirements for deposit mining. To better fulfill its purpose the committee is going to visit Dukat silver deposit in the end of February, reported the information agency "Russia Regions". The committee of natural resources notes that "Serebro Dukat" company is a "daughter" of a Canadian ore mining company "Pan American Silver". The license was purchased by the company in 1997. The agreement between "Serebro Dukat" company, Magadan region administration and the Ministry of Natural Resources of Russian Federation sets strict amounts for partial investments and time limitations for deposit mining. However, Serebro Dukat continually fails to carry out the agreed obligations. Moreover, the company management got involved in court trials, protesting against the results of a sales auction of the assets of Dukat ore mining and processing plant (GOK) which took place in November 1999. The contest was won by a Moscow company group Kaskol. Having bought all the assets of the bankrupt Dukat GOK, Kaskol was one of the initiators of the withdrawal of the deposit mining license.

Source: Finmarket