RE: Russia Mining Competitive Landscape- by Fitch13 Dec 2021 13:29
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 Bazhayev's 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 on its own.
The country's coal sector is almost entirely dominated by private investors. Major producers operating in the coal sector include SUEK, Kuzbassrazrezugol, Siberian Business Union and Vostsibugol.
Continued…
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