In 2019, TSG already benefited from a reduced tariff of Rb4.69 per kilowatt-hour (US$0.076/kWh), leading to significant cost savings.

Under the new agreement, RusHydro Group subsidiary Kamchatskenergo will continue to supply electricity at a slightly higher, but still reduced tariff of Rb4.75/kWh (approximately US$0.077/kWh).

"The programme of electricity subsidies supports a policy aimed at encouraging investment into the Far East of Russia and aiding economic growth in the region, following the implementation of incentive measures introduced by the Russian government," the gold producer said.

TSG CEO Alexander Dorogov was pleased with the continued support from the local energy provider, helping reduce energy costs as it operated in the lower levels of the mine.

"Lower energy costs materially reduce the financial burden for companies operating in the Far East of Russia, and these regional economic growth incentives reaffirm the attractiveness of the region for investment," he said.

The Asacha mine, which began production in September 2011, is located 150 kilometres south of the port of Petropavlovsk in Kamchatsky.