New market study, "Russia Mining Report Q3 2010", has been published

July 17, 2010 - PRLog -- The Russian economy is slowly recovering from the economic crisis, however, the aftermath has seen many mining companies burdened by heavy debt. The prices of commodities are continuing to rise and the market as a whole is seeing signs of recovery but there is concern that this recovery is temporary and much of it is reliant on demand from China.

In 2009, China overtook Germany to become Russia's leading trading partner. China suffers from having few resources of its own and is therefore highly dependent on imports. This is very beneficial to Russia's mining industry, however, sustained demand will also be linked to the Western world's economy. This is because China is reliant on the West's buying power for much of its industrial production and therefore a prolonged slump in the US, Europe and Japan, will result in Chinese demand for raw materials also falling. In turn, this could impact on exports of Russian mines supplying Chinese manufacturers. The recovery of Russia's mining industry is therefore unpredictable and could be very temporary. If China's economy falters, which is very possible due to the possibility of a double-dip recession in the West, it could lead Russia's mining companies into more debt and another crisis.

Gold, however, is seen as a relatively safe commodity in Russia as it is throughout the rest of the world. Russia's leading gold miner, Polyus Gold Mining has already expanded into Central Asia with its purchase of a 50.1% stake in Kazakh Gold Group while Petropavlovsk, the third-largest gold miner in the country, raised US$50mn in February for expansion projects. The price of gold has almost doubled since the autumn of 2008, before the downturn, and now stands at US$2,100, with investors viewing it as a safe-haven in times of economic uncertainty.

Meanwhile, Russian Prime Minister Vladimir Putin has called for more development into domestic uranium sites. Sergei Kiriyenko, the head of state-controlled nuclear corporation Rosatom stated that while Russia has a number of undeveloped uranium deposits, they could take a long time to develop.

However, there are certainly some improvements being seen in the mining industry. Prices are rising in all sectors and global demand is growing steadily. A number of mining companies are turning to IPOs to raise funds to offset debts, with the most significant being UC RUSAL, the world's leading aluminium producer who entered the Hong Kong stock exchange in January 2010. BMI forecasts that in 2010 the Russian economy should expand by 3.4%

Industry Forecast

In 2009 BMI estimated that the mining sector declined by 8.6%, but Q110 has seen the market recover slightly with the continuing rise in commodity prices and rise in global demand. By the end of 2010 BMI estimates that the mining sector will be worth US$162bn and by 2014, we project that this figure will have risen to US$236bn.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/72782_russia_mining_report_q3_...

Partial Table of Contents:

Executive Summary
SWOT Analysis
- Russia Political SWOT
- Russia Economic SWOT
- Russia Business Environment SWOT
Global Mining Outlook
- Table: Rio Tinto's Capital And Major Evaluation Projects For 2010
- BMI Views
- Risks To Outlook
Industry Trends And Developments
- Overview
- Regulatory Structure And Developments
Key Projects
- Metals
- Bauxite And Alumina
- Iron
- Gold
- Copper
- Nickel
- Platinum Group Metals (PGM)
- Uranium
- Zinc
- Minerals
- Coal
- Diamonds
- Table: Mines In Russia
Business Environment
- Europe Mining Business Environment Ratings
- Russia's Mining Ratings
- Legal Framework
- Table: BMI's Legal Framework Ratings
- Labour Force
- Table: Demographic Indicators, 2000-2030
- Table: Labour Force Quality
- Foreign Investment Policy
- Table: FDI Inflows Into Central And Eastern Europe And Central Asia, 2005 And 2006
Political Environment
- Domestic Politics
- Long-Term Political Outlook
Industry Forecast Scenario
- Commodities Forecast - Nickel
- Table: BMI's Nickel Forecast
- Table: Nickel, 2005-2011
- Commodities Forecast - Aluminium
- Table: BMI's Aluminium Forecast
- Table: Aluminium, 2005-2011
- Commodities Forecast - Gold
- Table: BMI Gold Forecast
- Table: Gold, 1999-2009 (tonnes)
- Commodities Forecast - Copper
- Table: BMI's Copper Forecast
- Table: Copper, 2005-2011
- Russia's Mining Industry Forecast
- Table: Russia's Mining Industry, 2007-2014
Competitive Landscape
- Table: Key Players In Russia's Mining Industry
Company Monitor
- ALROSA Company
- Mining and Metallurgical Company (MMC) Norilsk Nickel
- Polyus Gold Mining Company
- United Company Russian Aluminium (UC RUSAL)
Global Assumptions Q310
- Table: Global And Regional Real GDP Growth And Exchange Rates, 2009-2012
- Table: GDP Growth, Inflation, Interest Rates And Exchange Rates, 2008-2014
- Table: Developed States' Real GDP Growth, 2009-2012 (% y-o-y)
- Table: Emerging Markets' Aggregate Growth, 2009-2012 (% y-o-y)
Business Environment Ratings Methodology
- Table: Mining Business Environment Indicators
- Table: Weighting Of Components

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=7278...

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.