According to “Vedomosty” publications, British Highland Gold Mining Company has faced unexpected difficulties in the project of the Mnogovershinnoe gold ore deposit exploitation, the deposit being one of the largest in Russia. The administration of Khabarovsk region has cancelled the equipment lease contract with the operator of the project — CJSC “Mnogovershinnoe”. The administration has demanded to increase the rate of payments for lease or to buy the equipment for $30 mln.

Highland Gold Mining Company possesses 100% of CJSC “Mnogovershinnoe”, the owner of the licence for the deposit in Khabarovsk region exploitation..

According to the deputy minister of property relationship of Khabarovsk region Tamara Chulkova, the administration cancelled the lease contract on July 1 2003 as CJSC had broken the regulations of the contract by non-financing the property maintenance. Significant part of the property has been lost and stolen. Besides, the authorities of the region have reappraised the property and as a result of this reappraisal the balance cost of the property let on lease to CJSC “Mnogovershinnoe” has increased up to about 1 bln roubles.