Russia was having a difficult time expanding gold production because reserves at existing enterprises were being depleted and gold mining companies were experiencing greater difficulties in obtaining licenses to mine new deposits. Formerly, local Government entities could issue such licenses, but in 2005, these licenses could be obtained only through the Russian Ministry of Natural Resources based in Moscow. Placers contain 18.2% of the country's reserves but they were being significantly depleted, and most existing placer mining operations were unlikely to survive beyond 2011. However, placers still contributed nearly 50% of annual production. In 2005, no new gold deposits were put into production.