Lenzoloto

One of the oldest gold mining enterprises in Russia begins its story in the second half of the XIX century; from the start of the Siberian “Gold Rush”.  The largest in the region, “Lenin gold-industry comradeship” (Lengold), was founded in 1855 by Irkutsk merchants P. P. Basnin and P. I. Katyshev and ended its existence in 1920.  The Comradeship had time to explore and begin work on many alluvial deposits, and create a powerful infrastructure.  Because of gold, the silent taiga became a vigorously developing region in just a short period of time.  In 1921, more than 400 mines were nationalized and were named “Lengold”.

However, the Revolution and the Civil War led the entire system of gold mining to a decline.  In order prevent it, the Soviet Government decided to give the mines for the concessional use to the English joint-stock company “Lena Goldfields” for the duration of 30 years.  The solution did not justify itself.  Mining at only the exceptionally productive deposits, the destruction of large underground workings, flooding of the mines and the accelerated destruction of infrastructure did not contribute to the development of the mine. 

In 1930, the concession agreement was broken ahead of time and the control was placed back in the hands of the state.  The state gold-industry association “Lengold” was recreated into a trust and began actively working in the Bondaidinskiy Region.  But came 1937, and following that the year 1941.  Many specialists of the trust became victims of repression, and the remaining left for the front.  Their replacements were women and adolescents.  For their priceless work and everything that they have done for the country, “Lengold” was awarded with the highest honor—Lenin’s Orders, on December 16, 1964.  The order and medals were awarded to 126 workers.

In 1946, the trust continued its progress and began to actively develop the mechanized methods for mining in the deposits.  During the years of 1950 to 1967, the trust became the winner of the socialist competition among enterprises in the ministry of nonferrous metallurgy 17 times.  The introduction of highly productive mining technology continued during the next period, in particular the techniques for deep excavation and powerful moving excavators.  The gold excavated, continued to increase until the beginning of the 1990’s. 

The construction the new Suholuzskiy gold enterprise for the development of the largest deposit in Eurasia, “Suhoi Log”, was done simultaneously, with the development of the alluvial deposits, from the beginning of the 1980’s and with the forces of “Lengold”.   Before the collapse of the USSR, 600 mln. rubles was used for the development of the deposit.  Since 1991, the government financing for the development was stopped and for some time, “Lengold” continued the operations using their own resources.  By that time, the construction of Suholog factory was estimated at $2.5 milliard.  The project was stopped. 

Lengold Corporation has just conducted structural reorganization.  The mines were converted into subsidiaries, which could begin their work with a clean slate.  Simultaneously, Lengold is working with creditors on restructuring and the liquidation of debt.  The restructuring of the enterprise and the creation of the holding company, has allowed Lengold to launch 95% of the previously preserved equipment and to start work at the deposits, where work was previously halted.

In 2003, the enterprise became a part of the Polyus Group and began a new page in its history.  The revival of gold mining in Boidaibinskiy region obtained a stable foundation.