BIG CONCESSION

Grey River Argus, 28 July 1925, Page 2

BIG CONCESSION

1,500,000 ACRES IN SIBERIA.

RUSSIA SIGNS. The contract closed by the Soviet Government with Lena Goldfields, Ltd., a Loudest corporation, covers the exploitation of 1,500,000 acres of gold, silver, ccppcr and lead-bearing areas in the three districts of Lena, Altai and Sissert in Siberia, and is the most important concession ever granted by the Soviet.

It is understood that important New York banking and mining interests Will have a considerable participation in the operations uf the company v. hen its plans are completed. If the contract runs to the end of its term of 50 years it. will involve a turnover of many hundreds of millions of dollars.

Loan Goldfields, Ltd., embraces .also the interests of the Russian Mining Corporations Ltd., the Altai Mines Ltd., and the Sissert Company, which with the Lena Goldfields Company operated the mines covered by the present concession before the revolution. ENGINEER’S ESTIMATES.

The company’s engineers estimate that in the sections of tho properties already prospected there are 150,000 000 dollars worth of fully developed metals, while in the unprospected areas there is said to be a much greater amount.

In the Altai district alone, which covers 13,000 square miles, there is declared to be 2,000,"000 tons of ore with an average recoverable content uf silver, copper and lead of 50 dollars a ton. The Sissert Mines, which are the largest in Europe or Asia, cover 1,250,000 acres, and yield an average of 100 dollars worth of gold, silver ami copper per ton. The Lena Goldfield, which is a placer property, embraces about 150,000 acres and is estimated to jiroduce from 50 cents to one dollar worth of gold fur every yard of gravel moved in dredging and about 10 dollars per yard for underground work. The Sissert area is also rich in iron and timber, which the holders of the concession will exploit. In addition the coalmines in the Kuznetsk Basin and the anthracite mines in the Urals are to be worked by the company. COMPOSITION OF STAFF. Under the terms of the contract the Soviet Government turns over to the company many steamers, steel barges and tugs for transportation on tho Lena River. The contract provides that G per cent in eash or kind of the total production is to be paid to the Government by the company during the first five years of the contract. The company agrees to install several million dollars’ worth of modern equipment, which will be largely / American manufacture.

The company’s technical staff will to a great extent be British and Amer ican. Tho company agrees to- abide by the Soviet labour laws, but the .ontract contains fl," unique clause provid ing that all disputes shall be referred to a special arbitration board consisting <d' professors of geology and mining in Swedish and German technical academies.

The contract, which covers 93 pages is subject to ratification by the directors of Lena Goldfields, Ltd., and it becomes void in case they fail to ratify it within three months.

Ihe concession was negotiated b* Walter Lyman Brown of Los Angeles, formerly European director of the American Relief Administration; Alexander Malozemoff, of Oakland, Cant., formerly chief engineer of the Lena properties, and Major Frederick W. D. Gwynnc, of Lu.