In gold they trust

5 December 2007 By Pierre Briancon

The Russian oligarch pays $400m for 40% of a gold mine in his home region of Chukotka, where he is the governor. This is not an altruistic investment. Like other Russian billionaires, Abramovich wants to take part in the industry s likely consolidation.

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Roman Abramovich agreed on Wednesday to buy as much as a 40% stake in ailing Londonlisted miner, Highland Gold. This gives Mr Abramovich an influential stake in Highland Gold's largest asset, the Mayskoye gold deposit in the Russian region of Chukotka, where Mr Abramovich has been governor since 2000.

Highland Gold is not subject to the UK Takeover Code, meaning that Mr Abramovich's Moscowbased Millhouse investment vehicle will not have to make a takeover bid despite increasing its stake beyond 30%.

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