New market study, "Russia Mining Report Q2 2011", has been published

New Materials market report from Business Monitor International: "Russia Mining Report Q2 2011"
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Listed Under

* Mining
* Russian
* Miner
* Rosatom
* Resulting
* Agency
* Diversify
* Uranium
* Potash
* Gold

* Industrial
* Manufacturing
* Energy

* Massachusetts - US

May 18, 2011 - PRLog -- Russia's mining sector is set to grow slowly over the forecast period to 2015, marking a reversal of the declining output seen since 2006. We forecast the value of the mining sector to reach US$259bn in 2015 from US$134bn in 2010, marking an annual average growth rate of 2.6%. While we expect Russia to remain the world's largest palladium and nickel producer, we forecast that its share of global output is likely to fall with faster nickel output growth in Canada and the Philippines and larger increases in palladium production in South Africa.

Modest Growth Across The Board

We expect Russia's nickel production will reach 302kt (thousand tonnes) in 2015, from 274kt in 2010, marking an annual average growth rate of 1.9%. This growth will be driven by Norilsk Nickel which expects to produce 12ktpa at the Skalisty mine in 2012 and 8ktpa at the Gluboky in 2013. Besides Norilsk Nickel, Amur Minerals has revealed estimated reserves of 171kt at its Maly Krumkon mine. In addition, we forecast palladium output to reach 3.0moz (million ounces) in 2015, marking average growth of 2.2% per annum from 2.7moz in 2010.

Full Report Details at

BMI expects platinum production to exhibit similar levels of growth, increasing by 2.5% per annum over the forecast period, reaching 917koz in 2015, from 810koz in 2010. The growth in platinum and palladium production will also be driven by Norilsk Nickel, which plans to increase output at its Severny and Oktyabrsky mines. Looking further ahead, Urals Alluvial Platinum is developing the Kluevsky & Volchetundra deposits which could provide a further boon to production.

Regulatory Environment

Russia's mining sector is wrought with bureaucratic obstacles which have restricted a number of foreign investors in the sector. At present, there are no indications that the government will ease these restrictions and thus we expect the sector will continue to be dominated by domestic miners. In 2010, the Russian government reintroduced a 6% gross royalty tax and introduced a 5% levy on nickel exports. The levy on nickel exports has had a negative impact on demand for Russian nickel as other nickel producers such as Canada and Indonesia have not implemented a tax hike. In addition, there are restrictions on foreign companies developing large-scale resources in Russia and diamonds, uranium, cobalt, nickel, lithium, the platinum group metals, tantalum and niobium cannot be mined by foreign companies. These legal obstacles, as well as the endemic corruption in Russia, will continue to prevent overseas companies from investing in the mining sector.

Key Players

Russia's mining sector is dominated by Norilsk Nickel, the world's largest producer of palladium and nickel. We expect Norilsk's dominance to continue as it possesses some of the largest expansion plans. That said, growth will be restricted by falling grades at the company's Komsomolskiy nickel and the Kaula-Kotselvaara palladium mine. We expect the mining sector to remain consolidated in future as few new companies have stated an interest in developing resources. However, if metal prices remain elevated, there could be substantial exploration projects in Russia, given the country's size and potential reserves.

Report Table of Contents:

SWOT Analysis
- Russia Political SWOT
- Russia Economic SWOT
- Russia Business Environment SWOT
Global Mining Outlook
- Table: Main Frontier Mining Projects
- Table: Lower Grades At Key Mines
- Table: Uranium Developments
- Table: Regulatory Issues
- Table: Other Developments
Industry Trends And Developments
- Table: Main Projects
- Table: Mining Industry Value, 2008-2015
Europe Mining Business Environment Ratings
- Europe Mining Business Environment Ratings
Political Outlook
Industry Forecast
- Palladium: Output To Surpass 3.0moz In 2015
- Table: Largest Expansion Plans
- Table: Palladium Production, 2008-2015
- Nickel: Norilsk To Lead Gradual Output Increase
- Table: Expansion Plans
- Table: Nickel Production, 2008-2015
- Platinum: Norilsk To Increase Production Marginally
- Table: Largest Expansion Plans
- Table: Platinum Production
Regulatory Development
Competitive Landscape
- Table: Operating Statistics, 2010 (US$mn)
Company Monitor
- Norilsk Nickel
- Eurasia Mining
- Amur Minerals
Commodities Forecasts
- Aluminium
- Copper
- Lead
- Nickel
- Tin
- Zinc
- Gold
Global Assumptions
- Table: Global Assumptions, 2009-2015
- Table: Regional Real GDP Growth, 2010-2013 (% change y-o-y)
- Table: Selected Exchange Rates, 2010-2013 (average)
- Developed States
- Table: Developed States' GDP Growth, 2010-2013 (% change y-o-y)
- Emerging Markets
- Table: Emerging Market's GDP Growth, 2010-2013 (% change y-o-y)
- Consensus Forecasts
- Table: Consensus Forecasts, 2011 And 2012
Country Snapshot: Russia Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2006
Business Environment Ratings Methodology
- Table: Mining Business Environment Indicators
- Table: Weighting Of Components

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at

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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.
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Tags:Mining, Russian, Miner, Rosatom, Resulting, Agency, Diversify, Uranium, Potash, Gold
Industry:Industrial, Manufacturing, Energy
Location:Massachusetts - United States
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