Abramovich’s Millhouse group and Melbourne based BHP will develop the Baimsk block, which reportedly holds on of the largest gold deposits in the far east Russian area, RT reports.
Estimates expect the reserves of the Peschanka deposit to total 27 million tons of copper and 1,600 tons of gold.
Millhouse holds the rights to the area and may take a 25 percent stake in the joint venture, earning them an estimated total of $1 billion on the deal. BHP, meanwhile, is expected to hold a 75 percent stake in the operation, according to RT.
Difficulties anticipated for the two companies include a lack of infrastructure and energy supply in the region. The only nuclear power station in the area would be unable to deliver the necessary amount of electricity to the mining companies.
Both companies refused to comment on the venture, though they may reach an agreement by the end of the year.
Abramovich’s wealth was estimated at $13.4 billion by Forbes in 2011. He owns England’s Chelsea football club and the world’s largest yacht, according to RT.