Economy
First priority development area in the Arctic to be created in Yakutia in 2018
© RIA Novosti. Evgeniy Epanchintsev

First priority development area in the Arctic to be created in Yakutia in 2018

The first priority development area in the Russian Arctic will be created in 2018 in Yakutia. The site will be primarily for tin mining, the government of the Republic of Sakha (Yakutia) said on Wednesday.

"The first Arctic priority development area will be created in Yakutia in 2018. The decision was made after a meeting between Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev and Yazuan company management on Chinese Investor's Day in Vladivostok. The first Arctic priority development area is to promote industrial development of the northern and arctic regions of the republic," the report reads.

Yakutia was represented by Deputy Prime Minister Igor Nikiforov and General Director of JSC RIC Pyotr Alekseyev at the talks. Previously, a cooperation agreement was signed between RIC and Yazuan Investment, according to which the Chinese company will create infrastructure for the development of mining sites, including new roads, utility line and energy infrastructure.

"The investment agreement signed by Gold Invest and Yanolovo provides for a three-stage development plan for the tin deposit in the Ust-Yansky District of Yakutia. Estimated annual tin extraction volume runs from 500 to 4,500 tonnes, while annual domestic consumption of tin is 6,500-7,000 tonnes," the report reads.

Significant reserves of Russian tin are concentrated in the deposits of the Ust-Yansky District of Yakutia (Deputatskoye, Churpunnya and Tirekhtyakh), which are part of the Yano-Indigirskaya tin-bearing province. The license for the exploration and extraction of placer tin at the Ruchei Tirekhtyakh deposit, which is considered unique in reserves, is owned by Yanolovo.

The tin project is a priority for the North Yakut stronghold, as 37 percent of the country's proven tin reserves (630,000 tonness) are located in Yakutia, while Russia produces only 10 percent of the needed tin (about 500 tonnes per year); 90 percent of the metal is exported.