The Government of the Republic of Tuva* announced that it has taken control over the situation with Longxing Mining Company, which has decided to suspend operations due to financial difficulties caused by significant expansion of sanctions and refusal of Chinese banks from working with Russian financial institutions.
The Government of Tuva said that the suspension decision was preliminary and would be reviewed after negotiations with the parent company. Li Kaiwen, CEO of Lunsin LLC, flew to China today.
Longxing is the largest mining company in Tuva and the only developer of zinc concentrate in the region. It is developing the Kyzyl-Tashtek polymetallic deposit at an altitude of 1,800 meters in the Obruchev Range in the narrow Ak-Khe River valley. The company has about 1200 employees, including about 80% from local residents.
The founder of Longxing is Heilongjiang Zijin Longxing Mining Co., a part of the Chinese mining company, Zijin Group.
*The Republic of Tuyva is a pfart of the Russian Federation and is located in Siberia bordering Mongolia.
