Nordgold might shut down the capacity at Aprelkovo

​Nordgold of A. Morashov might shut down the capacity at the Aprelkovo mine in the Trans-Baikal region within a few months. The company might apply for its bankruptcy.

The local Tax Authorities have made a decision to additionally charge 229 mln roubles of taxes for 2011 and 2012. This amount represents the additional MET which was counted by the agency on the basis of the disputable taxation of the production capacity with a low coefficient of extraction. The decision of the Tax Office was supported by the 4th Arbitration Court of Appeal.

The company considers the charging of the additional taxes to be groundless and will put it in question in the cassation form. These claims will not touch other assets of Nordgold in Russia.

The collection of taxes will lead to the generation of the negative monetary flow by the mine which will stay the same during the remaining 2 years of the deposit’s operation. As a consequence, the mine will become loss making. These factors might lead to the shutdown of the production within the coming few months and applying for bankruptcy, is reported.