By Ullrich Umann Moscow-gtai

In Russia, the mining and processing of rare earth metals is to be promoted more strongly than before. Denis Manturov, Minister of Industry and Trade, said in a newspaper interview. A state sector program has been running since 2013. In view of the current scarcity situation on the world market, politics now attaches greater importance to this program.

Until 2020, state support will create a competitive industry for mining and processing rare earths. Therefore, more funds will be provided than originally planned. Without this increase, entire industries risk being hampered in their development due to scarce raw materials. In particular, the aerospace industry, but also the nuclear energy require rare earth metals more than ever.

Imports are to be substituted

Reliance on rare earth imports should be kept to a minimum, said Russian Minister of Industry and Trade, Denis Manturov, on 8. April 2014 in an interview with the business paper Kommersant. The area is even to be expanded so far that Russia - in addition to tungsten - can also export rare earth metals from 2020. Funding instruments provide funding for R & D and processing, interest subsidies and tax relief, Manturov stressed.

The research funds should reach beyond the refining stage also at the user companies of rare earths. These include the production of hybrid engines, computer technology, mobile phones and plasma screens. Rare earths are also needed for the melting of superhard steel grades and in the optical industry, in nano- and semiconductor technology as well as in the production of magnets and accumulators.

Without fresh investment, Russia's share of world aid and rare earth processing threatens to decline from currently about 2,0% to below 1,5%. According to Manturov, this tendency must be stopped and reversed. Especially since the country after the PRC has the world's second largest occurrence of rare earths. However, when it comes to raising these natural resources, the country is one of the laggards - potential and use are far apart. Currently Russia imports between 10.000 and 15.000 t rare earth every year.

Joint venture founded for promotion and processing

To change that, the Ministry gave 2013 the green light to start a joint venture. The company consists of the state holding company Rostec and the private IST group. The IST Group invests in major industrial projects and holds assets in the Russian gold and coal mining industry. The newly created joint venture is currently expanding its processing capacity for monazite concentrate at the Krasnoufimsk site (Sverdlovsk region).

In the future, the joint venture will bid for tenders for rare earths in other regions and invest in processing. For example, the city of Tomtor (Sakha - Yakutia) could become a future location for the production of scandium.

Tomtor also contains lanthanum, cerium, neodymium, yttrium and niobium oxide. Experts, however, point to a variety of climatic and technical problems that still exist in Tomtor to solve before funding would be economical. Also not to be underestimated are the expenditures for the recultivation of the assisted areas, when the supplies will one day be exhausted.

Until 2020, the joint venture from Rostec and IST is expected to raise projects worth a total of approximately 1 billion US $, Manturov said. If everything goes according to plan, Rostec could meet the demand for rare earth metals for its own holding companies from 2017 / 18 up to 90%.

Cooperation with Kazakhstan at Scandium

A closer cooperation with Kazakhstan is also planned. For example, the three companies Kazatomprom, Uranium One Holding NV (managing Rosatom's uranium assets outside Russia) and OOO Intermiks Met have jointly launched a project to promote scandium concentrate in Kazakhstan. From 2016, the concentrate is to be sent to Lermontov (Stavropol Territory / Russia) for hydrometallurgical plant (GMZ).

The GMZ plant is controlled by the Intermiks Met. The planned output is 6 jato Scandiumoxide. Currently, between 15 and 20 t scandium oxide is traded annually worldwide. Russia could cover from 2016 about 30 to 40%.

Intermiks Met is already implementing a scandium production project with the uranium holding of Rosatom, Atomredmetzoloto (ARMZ). The metal is falling in the district of Dalmatowo in the Kurgan region near the Russian-Kazakh border uranium mining.

Tungsten is already exported

Five mining companies are currently involved in the production of tungsten in Russia. They can completely cover domestic demand and supply the world market today. Between 4.000 and 5.000 t tungsten concentrate are promoted annually. The concentrate is processed in two processing plants. With the introduction of a 10% export tax in 2012, exports of unprocessed tungsten concentrate could be contained and capacity utilization at the two processing plants increased. But the factories still have free operating capacities.

Source: http://www.russland.ru/russland-will-den-abbau-seltener-erden-foerdern/?print=pdf