No investors for Murmansk rare earth metals

The Murmansk government believes the development of rare earth metals can become a new driver in regional economy. However, so far investors show little interest in the valuable earth elements.

This November, a planned auction on the development of the region’s most prospective rare earth metal deposit, the Afrikanda structure, was cancelled due to low interest among investors.

Speaking in a conference on Arctic developments in St. Petersburg this week, Murmansk Governor Marina Kovtun underlined that federal authorities must organize a new auction on the deposit in 2016.

”Considering the perspective major need of the Russian indutry of this kind of raw materials, we address Prime Minister Dmitry Medvedev with a request to hold a new auction in 2016”, Kovtun said, Interfax reports. The 2015 auction was cancelled due to the macroeconomic situation in the country, she argues.

The Afrikanda deposit is believed to hold more than 863,000 tons of rare earth metals. In addition, the deposits has big volumes of titan, tantal and niobs, Interfax reports.

The production license includes a 1,5 square km area located near the Imandra lake in the southern part of the Kola Peninsula.