Operating Environment Chukotka
TIG has interests in two tenements which are located within 30km of the Bering Sea coast in Chukotka Autonomous Okrug, far eastern Russia. The two tenements, Amaam and Amaam North, together comprise the Amaam Coking Coal Project.
Chukotka Autonomous Okrug (Chukotka) is a federal subject of Russia (an autonomous okrug) located in the Russian Far East. The autonomous okrug’s surface area is 737,700 square kilometres (284,800 sq mi) with a population of 50,526 (2010 Census).
The principal town and the administrative centre is Anadyr, approximately 240km north of the Amaam project.
Chukotka is bordered in the north by the Chukchi Sea and the East Siberian Sea, which are part of the Arctic Ocean; in the east by the Bering Strait and the Bering Sea, part of the Pacific Ocean; in the south by Kamchatka Krai and Magadan Oblast; and in the west by the Sakha Republic. The peninsula’s eastern-most point, Cape Dezhnev, is the easternmost point of mainland Russia.
Chukotka’s climate is influenced by its location on the three neighbouring seas: the Bering Sea, the East Siberian Sea, and the Chukchi Sea. The coastal areas typically experience milder temperature variations than inland Russia, with little precipitation, between 200 and 400 mm per year. Mean temperatures in the regional capital Anadyr vary from −26°C to −19°C in February and from +8°C to +14°C in July.
Chukotka has large reserves of oil, natural gas, coal, gold, and tungsten, which are slowly being exploited, but much of the rural population survives on subsistence reindeer herding, whale hunting, and fishing. The urban population is employed in mining, administration, construction, cultural work, education, medicine, and other occupations.
The regional government is supportive of foreign direct investment in the mining industry and Russia maintains a favourable fiscal regime including a 20% corporate tax rate with accelerated depreciation and a state royalty on coking coal of 57 Rubles/t, which is approximately US$1.75/t. Canadian gold miner Kinross has operated successfully in Chukotka since 2002.