In the Republic of Tyva, Russia, one of the largest mining enterprises was under threat of closure.
This is reported by SilkBridge with reference to The Moscow Times.
We are talking about the Kyzyl-Tashtyz Mining and Processing Plant (GOK) Longxing LLC, which belongs to the Chinese Zijin Mining Group, one of the largest companies in China.
The company refers to financial difficulties caused by "a significant expansion of sanctions and subsequent refusals by Chinese banks to work with Russian financial companies."
It is noted that about 1,200 people work at the GOK, 800 of whom are local residents. The termination order was signed by the general director of the plant, Li Kaiwen. The company also noted an increase in the number of inspections by the supervisory authorities.
At the same time, "high-ranking officials from the government and the prosecutor's office came to the enterprise."
The supervisory authority of the region announced the start of an inspection at the GOK. The Agency will examine the management's actions to comply with labor laws and protect the rights of investment entities.
Also, as part of the verification measures, an assessment will be given of compliance with the procedure for introducing downtime and stopping activities.
The company has declared downtime due to the fault of the employer since June 1, 2025. It is also emphasized that the prosecutor's office has secured payments totaling 25.6 million rubles to 209 Russian employees of Lunsin"in connection with the revealed facts of wage discrimination."
The regional government reported that there was an "imbalance in labor relations," but the plant's work continues. The authorities promised that the decision on the closure will be reviewed, and a working group has been formed for this purpose. The head of the company has already flown to China to negotiate with the parent company.
Lunsin, which was established in 2005, is developing the Kyzyl-Tashtyz polymetallic deposit with a license until May 1, 2031.
In 2015, the company commissioned a GOK with an annual polymetallic ore processing capacity of 1 million tons and a production capacity of about 220 thousand tons of copper, zinc and lead concentrates. Investments amounted to 17 billion rubles.
In 2024, the company made a net profit of 10.22 billion rubles (114 million dollars).
