Photo: Victor Vonog / TASS
The Ministry is discussing with the authorities the extension of the zero rate of severance tax on the extraction of tin and removing the tax burden from the extraction of rare earth metals. For Russia’s only producer of tin — company “Rosolova” is able to complete the modernization of its processing plants
The Ministry of industry and trade in materials to the Board, held on March 24, announced that it is working to zero tax on extraction of tin and ores of rare metals.
“Conciliation is working with interested Federal bodies of Executive power”, — stated in the certificate prepared by the Ministry of industry and trade and is available to RBC.
Met in the manufacture of tin zeroed back in 2013 to promote the release of this metal has still not recovered to the level of 1980-ies. In 2016 “Rosolova” (part of “Seligdar”, 40% of which is owned by the investment company “Russian funds” Sergey Vasileva) increased the production of tin by 6.9%, to 618 T. Until 1990-ies its production reached 18 thousand tons Now to 90% tin Russian imports.
The Deputy Director of the only producer of tin in Russia “Rosolova” Valery Kuznetsov told RBC that the company sent all the necessary documents to the government and hopes for a positive decision. “We look forward to extending the zero rate of mineral extraction tax because our refineries, modernization of which is ongoing, has not yet reached 100% download and do not generate sufficient funds that would have covered the costs of their development,” he says. While most of the investment program is carried out on money of shareholders, said Kuznetsov. According to him, Mining companies will be released this year on a small profit, and fully loaded “Rosolova” only in 2018-2019. “Rosolova” in 2013 took to restore the mining companies in the Khabarovsk Krai and the far East.
Recently, controlled by Millhouse of Roman Abramovich company “Northern tin” refused to develop in the Chukotka Autonomous district fields Pyrkakai (largest in Russia) and passed the license to the state reported by the “Kommersant”. The company decided that this project is economically feasible if volatile prices for the metal. Now a ton of tin on the London metal exchange is $20.3 thousand, but in 2015 the price has dropped to $13.6 K per ton.
Despite the fact that in August 2016, the President of Russia Vladimir Putin instructed the government before 1 December 2016 to consider lower tax rates on rare and rare earth metals, as reported on the website of the President, the final decision was never adopted. Now, with the production of these metals continues to operate the rate of mineral extraction tax of 8%.
Rare earth metals are used in glass and ceramic industry and electronics, in particular, in the production of televisions, computer monitors and mobile phones.
According to the expert magazine “Rare earth” by Sergei Makhov, now the market of rare earth metals monopolisitic China with a share of about 90%. China is also one of the largest consumers of rare metals. High demand also exist in Japan, the EU, UK and USA.
Consumption of rare earth metals in Russia is much higher than production. The latter developed rather poorly and represented by only three large companies: the Solikamsk magnesium plant, “Akron” in Novgorod and the “Hydrometallurgical plant” in the Stavropol region. While Russia is in second place in the world in terms of reserves, after China, the expert said.
Zeroing severance tax on the extraction of rare earth metals is a huge opportunity for the industry, says Mach. This measure will have a positive impact not only on import substitution but also export orientation.
“The decrease in met, if there are no administrative complications, will allow to develop the production of large holdings, which would no longer be afraid of huge taxes,” said Mach.