Polyus Gold said that it would receive electricity from the existing Kolymskaya plant and the Ust-Srednekanakaya project, which is under construction.

The 570MW Ust-Srednekanakaya project is being built on the Kolyma river and is to be completed in 2012. The plant is to have average long-term production of 2,500GWh annually.

Last year Matrosov Mine, a subisiary of Polyus Gold, applied to the federal authorities for power supply support for the firm’s proposed Natalka hard-rock gold mine in the Omchak river basin, which is to commence operations in 2013.

RusHydro was established in 2004 as part of the reorganisation of the country’s federal assets, which also saw Hydro OGK hold the major hydropower assets.