INTERVIEW-UPDATE 1-Polyus Gold chairman Prokhorov eyes 22 miners

(Adds details, quotes, background)

By Polina Devitt

MOSCOW, Nov 25 (Reuters) - Polyus Gold, which mines a quarter of Russia's gold, has 22 companies in its sights as it seeks to acquire cash-strapped miners during the global financial crisis, the company's billionaire chairman said.

Mikhail Prokhorov, who owns around 30 percent of Polyus, told Reuters gold was among the best businesses to be involved in during the crisis and the company wanted to acquire troubled mining companies with at least one strong operating asset.

"Polyus is maybe the only gold company in the world that keeps $1 billion cash on its account, because I was very conservative," Prokhorov said in an interview in his Moscow offices.

"We have our eye on 22 companies. Most of them are weak, but retain one good asset," he said. "We are looking for distressed debts. Our idea is to buy this debt."

Prokhorov, ranked Russia's fifth-richest man by Forbes magazine in May, is now widely believed to be the richest after pocketing an estimated $7-10 billion by selling assets shortly before Russian stocks began their 70 percent nosedive from May.

Polyus, the world's fourth-largest gold company by reserves, has ambitious plans to more than triple production by 2015. The company is the last to be co-owned by Prokhorov and ex-partner Vladimir Potanin after the billionaires' high-profile split.

Prokhorov said KazakhGold, the largest gold miner in Kazakhstan, was among the 22 miners on his list. Polyus has already offered to acquire a controlling stake in the miner.

"We are still active in negotiations with them, because the market situation is changing all the time," he said.

Gold has lost over one-fifth of its value since peaking at above $1,000 an ounce in March, although its descent has been less steep than those of other metals and crude oil.

"Gold has big multiples but cashflow is small compared with other companies in the sector. There is a need to be very conservative and to keep cash all the time," Prokhorov said.

NEW COMPANY

Prokhorov, a former chief executive and co-owner of Norilsk Nickel, has launched a new mining company with the aim of developing copper, nickel, molybdenum and precious metal fields in Siberia and northwest Russia.

Intergeo launched in July with a pledge to invest over $10 billion in the next five years to create a top-three global metals miner, $250 million of which would be spent in the next two years on exploration and existing licences.

Prokhorov said Intergeo, given the drop in commodity prices, would tackle its development on a project-by-project basis.

"For the time being, we are ready to develop only those projects that are small and do not need a great amount of cash." he said. "At all other licences, we are waiting on strategic investors." (Additional reporting by Mark Thompson, Michael Stott and Robin Paxton, writing by Robin Paxton; editing by James Jukwey)