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Far East tin production in 2011 could be resumed

Russia will reduce the tax rate on mining (MET) to zero for companies engaged in tin mining in the Far Eastern Federal District. This was at the government meeting, held on December 7 in Moscow, said Russian Prime Minister Vladimir Putin.

According to researchers, the world's tin reserves account for only about 5.5 mln. Tons. Russia, along with countries such as China, Indonesia, Malaysia, Peru, Brazil and Bolivia is among the leading countries among the countries that own stocks of this metal. At the same time, more than 70% of Russia's demand for tin is met through imports, as the profitability of production of this raw material is largely reduced due to an inconvenient geographical location of major deposits. According to the Government, zeroing severance tax rate for their development in the Far East (which until that time was 8%) make the industry more attractive to investors, and will resume production of tin in these remote areas.

Obviously, one of the factors that influenced the rate of adoption of such solutions is observed in recent months for the metal prices. So in October and November 2010, the price of tin on the commodity exchanges fluctuated around $ 24−27 thousand marks. Per ton.

In the Chukotka Autonomous Area (where tin mining was discontinued in the early 90-ies) contain large deposits of this metal. For example, in the field Pyrkakay (Stockworks Central, Down, Steep and Mountainous) are more than 250 thousand tons of raw materials legkoobratimogo. Therefore, the above-mentioned amendments to the Tax Code, prepared by the Ministry of Finance of Russia, probably will raise the interest of resource companies to the region.

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