New Market Report Now Available: Russia Mining Report Q4 2013

We forecast Russia's mining industry value to reach US$173bn by 2017, growing at an annual average rate of 3.0% from 2012 levels. The country's mining industry will experience years of slowing growth as palladium and platinum production undergo modest increases over the coming years. Nevertheless, the coal sector holds much promise over the long term as the government plans to invest RUB3.7tn (US$120bn) in the sector between 2012 and 2030.

We believe the mining industry in Russia is set to experience modest growth over the coming years. In line with the increasingly dour outlook in the global mining industry, there have been few projects and expansion plans announced in the country over recent years. The escalation of cash costs and falling commodities prices will continue to deter domestic miners from expanding output. That said, we note that the coal sector holds much promise over the long term as the Russian government plans to invest RUB3.7trn (US$120bn) in the sector between 2012 and 2030. Overall, we forecast Russia's mining industry value to reach US$173bn by 2017, growing at an annual average rate of 3.0% from 2012 levels.

Full Report Details at
- http://www.fastmr.com/prod/700742_russia_mining_report_q4_2013.aspx?afid=301

The Russian government will continue to maintain a strong influence on the mining industry. For example, total palladium supply from Russia is complicated by palladium sales from government stockpiles, which are very large relative to primary production. Foreign firms are also restricted in investing in the industry. Companies seeking to develop a 'strategic resource', defined as a region with more than 1.6mn ounces of gold and 500kt (thousand tonnes) of copper, must seek permission from a government commission. Diamonds, uranium, cobalt, nickel, lithium, the platinum group metals (PGM), tantalum and niobium cannot be mined by foreign firms. In practice, legal obstacles to foreign investment have prevented large overseas firms from developing exploration projects, and smaller reserves are relatively unattractive given the bureaucratic problems. We expect the regulatory structure to remain favourable to domestic miners with obstacles to foreign investment remaining. Endemic corruption will likely further dissuade foreign investment.

About Fast Market Research

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.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Global Mining Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Mining Industry
- Global Mining Survey 2013-2014 - Market Trends, Buyer Spend and Procurement Strategies in the Global Mining Industry
- Chile Mining Report Q4 2013
- China Mining Report Q4 2013
- Mongolia Mining Report Q4 2013