Russia: President Putin Calls for Investments in Rare Earths

by | 21. Nov 2024 - 09:34 | Economy

Development of the Tomtor deposit delayed.

Russia possesses large reserves of rare earths, but with a production of less than 3,000 tons, it plays a secondary role in this sector globally. Plans were already published in the summer of 2020 to make the country the second-largest producer after China, which, with 240,000 tons, remains firmly in first place. Moscow had intended to invest $1.5 billion in the rare earths industry, Reuters reported at the time. However, the development of the key deposit, Tomtor, in the east of the country appears to be stalled, according to the Russian news agency Interfax.

President Vladimir Putin stated that the companies that acquired the deposit are not investing. However, the state needs this strategic resource, as Interfax quoted. Either investment would be made, or the owners would have to cooperate with other companies to advance Tomtor, which also contains large reserves of the steel alloying element niobium. In November, the Russian newspaper Kommersant reported that the deposit might be placed under the administration of the state-owned holding company Rosneftegaz. Tomtor is located in the Sakha Republic, also known as Yakutia, which is rich in natural resources, from diamonds to oil, gold, and tin.

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