Canada’s Kinross, the Only Big Western Miner in Russia, Is Suspending Operations

Canada’s Kinross Gold Corp., the only large western miner in Russia, said it would suspend its gold mining activities in Russia’s Far East.

Kinross had until recently predicted the conflict in Ukraine wouldn’t affect its operations in Russia’s Chukotka province because of their remote location and use of local labor and supplies.

The company had also been in Russia for 25 years and survived through other crises in the country, it previously said.

Kinross “is deeply concerned about the loss of life and destruction in Ukraine and wishes to express its sympathy and support for the people who are suffering because of this tragic situation,” it said in a statement late Wednesday that also announced a $1 million donation to the Canadian Red Cross.

The company didn’t specifically say why it was suspending operations. So far there aren’t any sanctions that would directly target Kinross’s operation. But Western companies, from oil giants to car makers, are leaving Russia amid widespread public anger in the West at Moscow’s actions and because of the increasing difficulty of doing business there as sanctions close down transport options and hit the country’s banking sector.

Kinross’s Russian operations were notable in being the only significant foreign mining operation in the country. Russia has some of the world’s best mineral deposits, including diamonds, gold, nickel, coal and potash, but miners have steered clear, given what they saw as the risks and difficulties of operating there.

Russia was responsible for around 20% of Kinross’s gold production last year, though the miner said that this is expected to come down to 12% for 2022. Like all companies with exposure to Russia, Kinross’s shares have been sold off during the crisis. Gold is up around 6% this year to date and Kinross is down by a similar number.