Russia Mining Report Q2 2016

Date: March 16, 2016
Pages: 67
US$ 1,295.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: R61885B5FC5EN

Download PDF Leaflet

Includes 3 FREE quarterly updates

BMI View: Russia's gold and coal production growth will be the sector's relative bright spots, while PGM's and iron ore output growth will grind to a halt. Low metal prices, the country's inadequate infrastructure and Western sanctions will continue to limit the sector's production growth.

Latest Developments & Structural Trends
  • Although Russia's mining sector holds significant production growth potential - due to its rich mineral deposits, including coal, iron ore, gold and platinum - the country's bureaucratic hurdles, Western sanctions and weak mineral prices will limit new projects from coming online and weaken mining output growth over the coming quarters.
  • Coal: With 157bn tonnes (bnt) of coal deposits, Russia's holds the second-largest recoverable coal reserves in the world. We expect Russia's coal production to grow from 392mn tonnes (mnt) in 2015 to 427mnt in 2019, as production ramps up in country's Kuznets basin. This would represent an average annual production growth of 2.3% during 2016-2020, significantly lower than the average 6.4% during 2010-2014.
  • Gold: Russia will remain the world's third largest gold producer, with significant potential to expand output and increase the country's share of global gold production. We expect Russia to account for 9.6% of global gold production in 2016. We forecast Russia's gold output to grow from 8.0 million ounces (moz) in 2016 to 8.4moz in 2020. This would represent an average annual growth of 1.5% during 2016-2020, significantly slower than 5.3% during 2011-2015.
  • Iron Ore: Russia's iron ore production growth will be supported by the country's vast iron ore reserves and Metalloinvest's strategy to increase output through innovation at the firm's existing mines. Russia holds more than 25bnt of iron ore reserves, making it the third largest holder of reserves, after Australia and Brazil, respectively. We forecast Russia's iron ore production to grow from 110mnt in 2016 to 123mnt in 2020, averaging annual growth of 2.7% during 2016-2020, showcasing consistent growth following 2.7% y-o-y during 2010-2014.
BMI Industry View
  Table: Russia Mining Industry Value
Industry Forecast
Coal: Eastward Shift To Support Sector
  Table: Coal Production Forecast (Russia 2014-2020)
  Table: Russia - Distance From Coal Production Area To Shipping Seaport
Gold: Modest Growth Despite Headwinds
  Table: Gold Production Forecast (Russia 2014-2020)
Iron Ore: Modest Growth Despite Headwinds
  Table: Iron Ore Production (Russia, 2014-2020)
Nickel: Challenges Lie Ahead
  Table: Nickel Mine Production (Russia, 2014-2019)
Palladium: Slow Growth In Years Ahead
  Table: Palladium Production
Platinum: Growth To Stagnate
  Table: Russia - Platinum Production
  Table: Russia - Largest Platinum Projects
Industry Risk/Reward Index
Russia Risk/Reward Index
Europe: Majority To Be Low Risk-Reward
  Table: Europe - Mining Risk/Reward Index
Regulatory Development
Commodities Forecast
Commodities Outlook
  Table: BMI Commodities Price Forecasts
Competitive Landscape
  Table: Russia - Key Financial Data For Select Mining Companies
Company Profile
Polyus Gold
  Table: Polyus Gold - Financial Data
  Table: SUEK Subsidiaries
Regional Overview
Industry Forecast Methodology
Risk/Reward Index Methodology
  Table: Weighting Of Indicators
Skip to top

Ask Your Question

Russia Mining Report Q2 2016
Company name*:
Contact person*:
Request invoice
Your enquiry:
Please click on a Check Box below to confirm you are not a robot: