Russia has one of the world's leading mining industries.
Based on its annual production of commonly occurring mineral resources, it could be considered the largest producer of natural resources globally.
With rising demand and the country's goal to expand production, the industry is only growing.
The mining industry is an important part of the success of the Russian economy and its federal significance to policy, foreign affairs, and the legal framework of the country are prominent.
It's largely responsible for the overall wealth of the country and as a federal service, and its diversity and scale of production attract foreign investment.
Learn more about the past and future of Russian mining.
⛏️ Brief History Of The Russian Mining Industry
The earliest record of mining in Russia dates back to 2000 B.C. in the Ural Mountains, one of the oldest locations of mining in the world. Copper was recovered and smelted in various locations in the region.
These ancient mines were discovered in 1702 at the beginning of Russia's first wave of industrialization, the region became the base for the new metal industry with a focus on copper and iron ore.
By the mid-1800s, the Russian government began to focus on funding the industry, and the production of coal, iron, and steel increased.
After a long period of steady growth, the mining industry faced a rapid decline in the early 1900s during the Russian revolution and years of civil war.
Under Joseph Stalin, a focus on industrialization returned and coal and metal mining boomed.
Throughout the 1930s mines and processing plants were constructed around the Soviet Union.
Due to the prominence of the industry in the soviet period, in 1947, the USSR established an annual national holiday for Miner's Day, which is still observed today.
With mining operations on a massive scale, Russia has faced several mining disasters in the 21st century.
Most notably, the Ulyanovskaya mine explosion in 2007 killed 108 miners in the Kemerovo mining region, one of the world's largest coalfields.
Safety protocols and modern technology and techniques have significantly reduced the mortality rate of miners compared to their 19th and 20th-century counterparts.
For the last century, mining in Russia has flourished and expanded in both diversity of products and scale of production.
President Vladamir Putin strongly supports the growth of mining operations and passed legislation for legal entities to incentivize mining licenses and companies that develop resources for the industry.
Russian law states that all subsoil resources are owned by the Russian government.
In accordance with subsoil law, the owners of the land plots must obtain subsoil licenses from the Federal Agency for Subsoil Use and be granted mining allotment.
Such licenses are awarded for 20-25 years depending on the resource and presence of foreign participation.
While this is highly regulated under federal law and monitored by the federal authorities, subsoil users and often incentivized and rewarded for contributions to the industry.
⛏️ Most Commonly Mined Natural Resources In The Russian Federation
Russia is filled with diverse natural resources and rare earths, is the world's largest country by land mass, and is likely the richest country by natural resources.
Russia is abundant in natural gas, and a diverse list of valuable mineral resources, most in eastern Siberia.
The Southern Ural Mountains, east Siberia, and the far eastern regions are the most prominent mining regions and have vast mineral deposits and active Russian and foreign firms.
Russia also produces uranium and other radioactive materials that are subject to federal and state regulation as a form of joint competence.
Platinum Group of Metals
The platinum group metals contain some of the most valuable, rare, and useful metals, all of which are found in Russia. The country is the second in the work for producing metals in the platinum group.
Diamonds
Diamonds and precious stones are important to the Russian economy as the country is the largest diamond producer in the world.
Gold
Russia is estimated to have over a quarter of the world's unmined gold reserves. In 2017, the country produced 249 tons making them the sixth largest gold producer in the world that year.
Iron Ore
Russia has massive iron ore reserves in the southwest near Ukraine. The country's reserves and iron ore output are largely for domestic use but China is the largest consumer of Russia's exported iron.
Additional Metals
Russia has nickel-rich ores and produces more than 10% of the world's nickel. Russia also has over 105 of the world's copper reserves. The country is also high ranking for its production of aluminum, nickel, lead, zinc, and tin.
From their territorial waters to the Russian continental shelf, there's a lot of room for finding resources.
These include:
- Rare earth elements
- Mineral fuels
- Phosphate rock
- Crude steel
- Apatite concentrate
- Other precious metals
⛏️ Top 5 Mining Companies In Russia
Russian mine in Belgorod
The Russian Federation has nearly 800 registered companies in the mining industry.
These strategic companies are leading the way for the country to be responsible for the majority of the world's total mineral extraction.
These companies of strategic significance are the largest by production from 2020-2021.
⛏️ The Future Of Russian Mining Operations
Russia is starting to face challenges in the mining industry, especially recently with the sanctions from major foreign countries and the significant reduction in foreign investments.
With Russia aiming to expand mining operations, the industry will be at the center of geopolitical conversations with foreign investors.
Another challenge to the expansion of the industry is the vastness of the country against labor productivity and the cost of even joint ventures in rural areas.
While Putin's planned expansion is to increase domestic production, he also plans to invest in foreign companies and metallurgical enterprises in mining industries around the world.
But what are the plans for environmental protection? Mining largely depends on fossil fuels and environmental impact assessment concludes heavy pollution from the mining industry.
The Russian constitution states environmental protection must be passed federally and by state authorities and regional authorities.
This makes passing laws to reduce energy expenditures and improve environmental impact more difficult and less likely to occur in the near future.
This article was written by An Underground Miner