LONDON(BullionStreet): First time after Russian billionaire Mikhail Prokhorov announced plans to sell his stakes, Polyus Gold International Ltd , the largest gold producer in Russia announced increase in gold production.

In a statement, the company said its 2012 refined gold production rose 12% on the year to a record 1.68 million ounces, exceeding its production target by 5% with even stronger results expected in 2013.

The company sees total 2012 gold sales are estimated at $2.8 billion, up 22% from $2.3 billion a year earlier.

Polyus Gold sees 2013 production between 1.7 million and 1.8 million ounces of gold (1.59 million to 1.68 million excluding assets in Kazakhstan).

It said the increase in 2012 refined gold production is a result of higher gold output at all Russian operations, including significant increases at Olimpiada (+15%), Blagodatnoye (+11%) and Kuranakh (+19%), as well as the start-up of Verninskoye.

Fourth-quarter refined gold production totaled 478 thousand ounces, up by 22% compared with 391 thousand ounces in the fourth quarter of 2011, the company said.

Polyus has reaffirmed its commitment to start commissioning a 10 million ton-per-year processing plant at Natalka by Dec. 31 2013. Total capex for Natalka is now expected to be between $1.7 and $1.8 billion.