Russia
produced only about 2,600 tonnes of rare earth oxide in both 2017 and
2018, about 2% of global output, despite having the world's
fourth-largest reserves of the group of 17 metals with unique
electronic and magnetic properties that are vital to most modern
electronic products. China produced 120,000 tonnes of rare earth
oxide in 2018, accounting for about 70% of the world total, while the
U.S. has just one operating mine, the Chinese-owned Mountain Pass
operation in California, which produced 15,000 tonnes in the same
period. Australia took second place with output of 20,000 tonnes per
annum.
The
distribution of reserves tells a different story. Russia ranks fourth
with about 12 million tonnes, dwarfing top producers Australia with
3.4 Mt and the U.S. with 1.4 Mt, according to U.S. Geological Survey
data, though Russian President Vladimir Putin has claimed the country
ranks second since it estimates reserves differently, or possibly
first given its vast, underexplored territory.
However,
Russia faces a host of problems in developing deposits and
production. First and foremost is the issue of processing technology.
Nevertheless, Russia has a number of projects at different stages of
development. Tomtorskoye in the north of the Sakha Republic and the
Zashikhinskoye deposit in Irkutsk Oblast are the most promising in
terms of potential completion,
State-owned
technology conglomerate
Rostec Corporation
struck a US$1 billion deal in 2013 to develop Tomtorskoye in a
venture with Polymetal International PLC founder Alexander Nesis's
ICT
Group,
but progress has been slow and long-term financing is still
uncertain. Further delays are likely, given the degree of technical
complexity involved. The project is being run through
TriArk Mining LLC,
which hopes to produce 16,000 tonnes of rare earth oxide per annum
from the deposit as well as 14,000 tonnes of ferroniobium, an alloy
used in high-strength low-alloy steel.
Developing
Tomtorskoye is the only way to sharply increase Russia's extraction
of rare earths and production of collective concentrates
