Valery Pak – Deputy Minister of Natural Resources and Environment of the Russian Federation – The Head of the Federal Agency on Mineral Resources (Rosnedra) took part in the 9th Mining and Exploration Forum MINEX Russia 2013
On the 2 October, Mr Valery Pak, Deputy Minister of Natural Resources and Environment of the Russian Federation – The Head of the Federal Agency on Mineral Resources (Rosnedra) welcomed participants and guests at the opening of MINEX Russia 2013 Forum on behalf of the Federal Agency for Subsoil Use.
Mr Pak particularly stressed out that over the past ten years, MINEX Forum has become the main platform for international business dialogue highlighting the development and implementation of exploration projects in Russia and the CIS. All parts of the Forum – the conference and special roundtables, presentations on investment opportunities as well as on site trade exhibition alongside business receptions and meetings contribute to creating necessary conditions for a meaningful dialogue between the government and the mining business.
Deputy Minister Pak stressed that Russia has a unique set of features to potentially become in the near future the World’s mining leader. Mining sector has been and will remain in the foreseeable future the cornerstone of the Russian economy and the key source of financial income to the National Monetary reserve Fund. For Russia stability and performance of exploration and mining industries is of vital importance as mineral resources continue to be its main asset.
Many experts at the Forum have noted a positive trend in the development of exploration sector of the country. There are new fields and promising areas for almost all types of minerals on the map of Russia, the mineral resources are increasing and industry shows rise of production. Deputy Minister Pak emphasised that Russia remains a superpower when it comes to raw materials, not only in terms of resource potential, but also for the production of minerals, being one of the 10 top mining producing countries in the World.
For several reasons, Russia is still in the lead only on reserves, production, and, in part, the primary production. The processing and production of semi-finished products is lagging behind. Mining and processing power increases solely due to the intensification of production in existing and technologically run down plants. Further increase of production using the current mining plants has been exhausted. On the other hand, Russia still has a good starting position for changing the intensity of extensive development of mining and geology as the Russian Government is planning on adopting a new course to shift the economy to a new technological level. At present, both the state institutions and enterprises, as well as private market participants fully agree that the adopted state-level innovative scenario of the development of the mining industry should be based on a stable and advanced development of mineral resources, which constitute the basis of a significant proportion of the country's income, derived from the extraction , processing, and export to the world markets.
The problem remains how to determine rational and objective ratio for exploration costs between the funds from the state budget and the funds raised by the subsoil users.
Deputy Minister Pak said he understands the desire of the private subsoil users to reduce exploration in the current economic climate, however, he hopes that the companies will share the concerns of Rosnedra over development of mineral resources of the country and will find resources to carry out exploration. According to the Deputy Minister Pak the most significant part of the federal budget is presently allocated to the exploration of the hydrocarbons and precious metals. Rosnedra also continue to actively work on the development of mineral resources of other minerals.
Deputy Minister Pak expressed regret that the current increase in reserves of solid minerals is mainly associated with the identification and assessment of small and medium-scale mines which only marginally contribute to the growth of the mineral base of the country.
Deputy Minister urged to implement advanced scientific, organizational, technical and technological measures to identify large-scale projects which have utmost importance for building Russia’s mineral wealth.
Mr Pak stressed that majority of mineral deposits in Russia contain poor and complex ores which requires implementation of more efficient technologies to improve mining economics. In this context, Rosnedra expect an active participation of both domestic and foreign subsoil users operating in the territory of Russian Federation, he said.
Deputy Minister Pak expressed his confidence that the program of the conference and the exhibition at MINEX Forum provide an excellent opportunity for developing and maintaining business relationships in the mineral sector, as well as that the meetings and discussions held during the forum will create a basis for new projects and opportunities.
Mr Pak noted that this year Rosnedra was prominently represented at the Forum through its subsidiaries.
At the conclusion of his speech, Deputy Minister Pak expressed his gratitude to the organisers and participants for the preparation and holding of such an extensive event and wished all participants, guests and organisers of the MINEX Russia – 2013 a successful and fruitful work.
Also the Round Table of the Federal Agency on Mineral Resources (Rosnedra) was organised for the first time alongside the MINEX Russia Forum. The round table was attended by Deputy Minister of Natural Resources and Environment of the Russian Federation – the head of the Federal Agency on Mineral Resources (Rosnedra) Mr V.A. Pak and the Deputy Head of the Federal Agency on Mineral Resources (Rosnedra) Mr E. A. Kiselev.
The roundtable offered opportunity to discuss priorities facing Rosnedra as well as to have an open exchange of views with the leaders of mining companies, subsoil users, on the issues of development of the mining industry of Russia. During the roundtable participants made proposals and recommendations to the Ministry of Natural Resources and Environment Ministry and the Federal Agency on Mineral Resources (Rosnedra).
Translation from the Rosnedra press office official statement