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Natural Resources and Ecological Conditions
Forest Resources
The general area of the wood funf land in the Republic of Karelia makes 14,8 million hectares, or 82% of thetatal area of the republic. The total root stock of plantings is 910 million cubic meters, including 818 million cubic meters of coniferous wood.
The calculated wood-cutting area in the Republic of Karelia in 2003 has been authorized at a rate of 9210 thousand cubic meters. The established volume of wood distribution is 7 582 thousand cubic meters, or 82% of the authorized calculated wood-cutting area. It has been delivered 6 783 thousand cubic meters of wood according to logging licenses, or 89% of the established norm of forest exploitation. Actually it has been logged 6 091 thousand cubic meters, and the calculated wood-cutting area has been 66% mastered.
Within the framework of the Action Program of the Government of the RK on perfection of timber industry complex control system there have been developed measures providing switch to long-term competitive rent of wood fund sites that will allow to increase forest exploitation efficiency. Purposeful work on granting wood fund sites for lease upon competition began in 2003. The order of the Government of the RK authorizes structure of the commission on holdong wood competitions which has ratified new conditions of granting wood fund sites for lease upon competition.
In 2003 by results of wood competitions the volume of wood fund sites granted for lease has made 1,8 million cubic meters, that has made 30% of the norm of forest exploitation (6,1 million cubic meters) on the rented territories.
Granting the wood fund sites for lease upon competition will allow such enterprises as Medvezhiegorsky Timber Industry Enterprise Open Society, Shuya-Les Joint-Stock Company, Zapkarelles Joint-Stock Company, Muezersky Timber Industry Enterprise Open Society, Nord Inter Hauz Joint-Stock Company, Yushkozersky Timber Industry Enterprise Open Company, and Swedwood Karelia Open Company to achieve the level of the volume of investments in development of manufacture of 380 million roubles in 2004 and 2,2 billion roubles within the period from 2004 to 2010.
The work accomplished on increase of wood fund utilization efficiency will be continued. In 2004 it is supposed to grant wood fund sites for rent upon competition, when the volume of annual logging will make 4,1 million cubic meters, including 0.6 million cubic meters ( the sited never rented before).
In 2003 there has been held 63 wood auctions on which 225 thousand cubic meters wood to the total sum of 35 million roubles has been sold. In the budget of the republic has received 21 million roubles. The price of one depersonalized cubic metre of wood has made 155 roubles that exceeds the minimal rates of wood taxes 4,6 times. For 2004 395 thousand cubic meters is allocated for sale on wood auctions.
According to the Program Woods of Karelia for the Period till 2005 reafforestation and forestry works are basically carried out in the republic. Thus, reafforestation has been accomplished on the area of 21,8 thousand hectares, that 1,3% exceeds the plan, and wood sowing and planting has been accomplished on the area of 10,06 thousand hectares at the plan of 10 thousand hectares. Caring of wood cultures at the plan 21 thousand hectares has been accomplished on the area of 21,2 thousand hectares, cleaning cutting among young plants were executed on the area of 22 120 hectares at the plan of 22 100 hectares (100.1%).
In 2003 forest regulation has been accomplished in 6 timber enterprises.
Reproduction of wood has been funded at the expense of the republican budget to the sum of 36 million roubles, that is 1.5 times higher than in 2002. 564 forest fires has been registered during the fire-dangerous season of 2003 on the wood fund lands, or 1.9 times less than in 2002. The area, covered by fires was also 1.2 times reduced and has made 3 380 hectares.
Reproduction of the Source of Minerals and Raw Materials
Source of mineral and raw materials is the basis of the mining complex of the republic. The volume of the public funds invested in its development from the budget of Karelia was reduced in the recent years, however, last year it was possible to prove the necessity and involve additional means from the federal budget for reproduction of the source of mineral and raw materials and investment resources of the large companies (Norilsk Nickel mining and smelting Copmpany Open Society, Outokumpu joint-stock company, Almazjuvelirexport All-Russian Association) for exploring and evaluation of deposits of platinum and gold, and also means of businessmen and enterprises for geological studying and development of deposits of the prevailing minerals.
At the expense of the republican budget (15,5 million roubles) Scientific research institutes of Russia and Karelia at participation of enterprises performed a number of significant researches within the framework of working republican program Development of Bowels and Development of the Mining complex of the Republic of Karelia for 2000-2002-2010 under subprograms: Gold of Karelia, Platinum of Karelia, Macadam of Karelia, Facing stone of Karelia, Quartz of Karelia. Means of the federal budget (55,8 million roubles) and unappropriated sources (70,9 million roubles) were also involved for realization.
Within the framework of reproduction of the source of mineral and raw materials the perspective areas of uranium, vanadium, a palladium, gold, metals of platinum group in several areas of Karelia were allocated and estimated from the prognosis point of view. Prospecting stating of resources of 5 deposits of block stone, 6 deposits of building stone and macadam, 31 deposits of sandy gravel material were completed; the aura of diamond satellites were contoured, and forecasted resources on the given area were estimated. In 2003 173 bowels exploitation licenses have been issued.
Prospecting the gabbro-diorites deposit in Suojarvsky district where in less than one year a powerful macadam factory with investment potential of more than 10 million dollars has been entered into operation can serve an example of efficiency of using budgetary funds aimed at geological studying of bowels.
As a result of the performed work positive geological results on all basic orientations of research were received. The base list of the bowels exploitation licensing including 68 objects of building stone for manufacture of macadam and facing materials in various districts of Karelia has been generated, drawing up of the electronic map of minerals of the republic with the database on 2 760 deposits, displays and mineralization points is completed.
In 2004 the further growth of investments in exploring and estimation of deposits of precious metals and building materials is expected.
For the first time in recent years the volume of orders on many works (boring, geophysical research) has exceeded available technical and organizational opportunities of the prospecting organizations which demands to strengthen them in 2004. In view of results and experience of work in 2003 the program of prospecting and reproduction of the source of mineral and raw materials is developed for 2004 at the expense of means of budgetary and unappropriated sources.
Last year the Government of Karelia and the Ministry of Natural Resources of Russia have entered the agreement on cooperation in the sphere of wildlife management and environment preservation which realization will allow to simplify the process of bowels exploitation licensing essentially. Potential investors were supplied with information which meant exhibitions, symposiums, seminars held for them; development of investment projects; issuing printed documents regarding the source of mineral and raw materials and mining complex of the Republic of Karelia and providing this informaten through Internet.
In orer to continue the further studying the source of mineral and raw materials of the republic, increase efficiency of its use the following measures are anticipated in 2004:
- to make changes to the list of actions of the republican target program Development of Bowels and Development of the Mining complex of the Republic of Karelia for 2000-2002-2010;
- to develop within 2004 the order of using bowels at geological studying and extraction of the prevailing minerals with the purpose of increasing efficiency of use of the allocated source of mineral and raw materials and "defreezing" the distributed fund of bowels as through withdrawal of licenses of inefficient bowels exploitators, and through removing superfluous stocks from under jurisdiction of the companies which capacities do not meet optimum terms of operation of deposits;
- to keep working on complex evaluation of the objects of the source of mineral and raw materials most perspective for development in order to attract investments for mining complex development.
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