Vedomosti: Russian rare metal producers ask for state support
The Russian Association of Rare and Rare Earth Metals Producers and Consumers (RM and REE) has proposed increasing state support for the extraction and primary processing of these products. Ruslan Dimukhamedov, CEO of the Solikamsk Magnesium Plant (SMZ), told Vedomosti about this.
As benefits, they would like to have the right to conclude special investment contracts (SPIC) and agreements on the protection and promotion of capital investments (SPIC) for extraction and processing and to receive a reduction factor for the mineral extraction tax (MET) for new titanium and zirconium production.
In addition, companies in the industry insist on increasing duties on imported raw materials, which will reduce competition from foreign producers. The proposals were discussed at a closed strategic session on the development of the industry, which took place on May 20. Within a month, the initiative will be sent to the government.
Miners and producers of RM and REE already have a number of benefits, including loan subsidies and a tenfold reduced mineral extraction tax rate (does not apply to titanium and zirconium). However, since 2021, the conditions for exploration and development of deposits have worsened.
According to Dimukhamedov, taxes in the industry have increased, costs in many areas (personnel, fuel, materials, electricity, equipment) have grown, and prices for REE are falling.
Earlier, a joint study by the Institute for Comprehensive Strategic Studies (ICSI) and the P. A. Stolypin Institute for Growth Economics (IER) showed that this year the Russian authorities allocated 960 billion rubles to service preferential loans, which was a record amount for all years.