Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Russia Mining Competitive Landscape
01 Dec 2021
Key View
Russia's strict regulation on foreign investment will ensure the continued dominance of domestic miners within the mining sector over the coming years. Norilsk Nickel will remain the largest domestic player.
Russia's domestic miners will continue to dominate the country's mining industry as the strict regulation of foreign investment will prevent foreign miners from entering the sector. In our view, local mining companies will account for the majority share of Russia's mining sector over the coming years. The country's regulatory environment will deter foreign investment from entering the mining sector. The Federal Laws 57-FZ and 58-FZ aim to regulate foreign ownership and control of strategic assets and industries, including certain types of minerals, such as copper and any deposit area with mixed mineralisation. The Russian government has a tight hold on local mining industry assets. For instance, foreign miners willing to enter the domestic market must first gain previous consent from the Governmental Commission headed by the prime minister and are subject to a limit of 25% ownership in any domestic mine, as per the Strategic Investment Law. Additionally, the lack of financial resources available for miners suggests that foreign players will continue to struggle to obtain adequate mine financing. The London Stock Exchange has been the popular destination to raise capital for many Russian miners.
Main Players
The mining sector in Russia is highly consolidated, with only a handful of companies accounting for the main share of domestic output.
Norilsk Nickel is the country's largest metals producer. The company accounts for the lion's share (more than 90%) of domestic nickel output. In February 2021, Norilsk Nickel received a USD1.9bn fine from a Russian court in response to a large fuel spill which occurred in the Arctic in May 2020. In January 2021, the firm joined the Responsible Sourcing Blockchain Network (RSBN) built on IBM blockchain technology which helps improve transparency in the mineral supply chain. In 2020, the firm's Russian nickel operations increased 4.0% y-o-y to 172kt.
The country's palladium and platinum subsectors will rely on Eurasia Mining and Polymetal International in the coming years for production growth.
Russian Platinum, a member of Musa Bazhayevs Alliance Group, will boost its market share in the years ahead, having won the tenders for the rights to explore and develop the southern portion of the Norilsk-1 deposit. The area is home to one of the largest deposits of copper and nickel in Russia's Taimyr Peninsula, with estimated nickel, copper and cobalt reserves of 273kt, 378kt and 12.7kt respectively. In March 2020, Norilsk Nickel announced that Russian Platinum has decided to terminate the negotiations concerning Arctic Palladium JV. In turn Russian Platinum will develop the southern part of the Norilsk-1
+ pontenially 1800 more, things are moving slowly
Mrs in action
Bounce continues volume up to.....
Sorry for the delay in getting back, not been on the board much, Well done Jurado my guess was way optimistic. I will make my transfer at the weekend.
Thanks to chester18 for the organisation.
After close.
Lease for 3 weeks, small step. Still lacking sales.
Looking forward to the results. Will be looking to see indications about more clean rooms. Then cash burn. GLA This week.
Ginandmilk - The EUA board can be a real mess so just a watcher. I think both will give good returns on investment.
opps for last post press to soon.
Ginandmilk - The EUA board can be a rea
Up nearly 7% now - great start to the week, My holding is now blue, will continue to hold. While TRX may not be a EUA there is still more value to be added over the coming years.
Beach Volley Ball I think?
Blue this morning so the sentiment continues, a few more orders or news of the next expansion should see this moving towards 1p. Happy to hold.
Great RNS new fuel cell for prototype refuse truck. Could lead to fleet this is looking good.......
Another order, would be nice to get some new customers. The sector s down since the beginning of the year hope now to see a turn around. GLA
Great news but we need stronger sales growth to move PPS out of it current price range.
Nice to see TRX moving north.
Elective surgery is now gaining pace around the world more sale generated, with new clean rooms in action TRX can meet the demand.
Will continue to climb, would like to see a consolidation to move us out of the penny share range.
RNS one liner Adam has left the company and we have sold our holdings in Nathan River for a profit. Guess we will never know what really happened. But we now have 6m in the bank.
But the could say following bla bla bla The BOD is pleased to announce that all resolution passed.
We are now pleased to announce that ....................................................
So what is going to happen.............. ?
Resolution passed
Deal announced
Shares suspended
What is your guess.....