Mining Complex

In the field of mining industry development economic policy of the Government of the Republic of Karelia was built according to the Development of the Bowels and Mining Complex of the Republic of Karelia for 2000-2002-2010 republican target program.

Amendments were made to the Law of the Republic of Karelia On Some Issues of Subsurface Use in Territory of the Republic of Karelia and normative legal acts directed on its realization have been adopted.

Work on licensing subsoil use, monitoring of fulfillment of conditions by subsoil users continued. In 2009 it has been issued 31 licences to extract widespread minerals. By results of monitoring 21 decisions on preschedule cessation of the right to use bowels were made, 58 users of subsurface resources were forwarded notices on the possible preschedule cessation of the right to use bowels.

In economy of the republic mining enterprises play significant part. Karelsky Okatysh (Iron-Ore Pellets), Inc., provides production of 25% of all iron-ore pellets made in Russia, on its share there falls about 40% of the volume of iron-ore pellets exported by Russian consumers to the non-CIS states. The enterprise works according to the approved program of production and realization of finished goods till 2016 developed together with the operating company of Severstal-Resource Joint-Stock Company.

The Agreement between the Government of Karelia, Kostomuksha urban district and Karelsky Okatysh, Inc., was concluded. Within the scope of the Agreement there have been established special power and thermal energy tariffs for core and strategic enterprise of Karelsky Okatysh, Inc. In a combination to implementation of the anti-recessionary program of the enterprise adopted for 2009, it promoted rather fast achievement of positive rates of growth by economy of the enterprise, and has not allowed to admit dramatic setback in production.

One of perspective directions of mining industry development in the republic can become extraction and processing of schungite. The main enterprise in this area is Carbon-Schungite SPC, Ltd.

In 2009 Government of the RK together with UralChim chemical company, Inc., took measures on promotion of investment project concerning production of ferrosilicon with use of schungite from Zazhoginskoye deposit. It was decided to support the initiative of the enterprise to issue securities and use schungite powder at water purification for settlements of Karelia.

Significant funds are invested annually in mining industry of the republic. Enterprises producing road metal are built, 33 investment projects of building stone extraction road metal production are implemented. In 2009 volume of investments has made 3,5 billion rbl., 4 enterprises were commissioned, there have been created more than 400 new workplaces.

Nevertheless, due to reduction in demand for rubble, drop of volumes of construction, as well as absence of adjustable market of building materials inside the country in 2009 volumes of road metal production have not reached the level of 2008.