Russia Nickel Mining Market Overview and Forecast to 2020: Trends, Fiscal Regime, Major Projects, and Competitive Landscape Reference Code: GDMMNI008IDB Publication Date: Apr 2012 Russia Nickel Mining Market Overview and Forecast to 2020 GDMMNI008IDB /Published APR 2012 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form Page 1 Table of Contents 1 Table of Contents 1 Table of Contents ......................................................................................................... 2 1.1 List of Tables ....................................................................................................................................................... 5 1.2 List of Figures ..................................................................................................................................................... 5 2 Executive Summary ..................................................................................................... 6 2.1 Largest Nickel Mine Producer ........................................................................................................................ 6 2.2 Volatility in Nickel Prices ................................................................................................................................. 7 3 Introduction .................................................................................................................. 8 3.1 GlobalData Report Guidance .......................................................................................................................... 8 4 Russia, Nickel Mining Industry – Drivers and Restraints ......................................... 9 4.1 Russia, Nickel Mining Industry – Drivers .................................................................................................... 9 4.1.1 Substantial Investments to Support Mining Activities ............................................................................. 9 4.1.2 Major Sport Events Lead to Surge in Demand ........................................................................................ 9 4.2 Russia, Nickel Mining Industry – Restraints ............................................................................................. 10 4.2.1 New Export Tax to Discourage Miners ................................................................................................... 10 4.2.2 Nickel Prices to Decline by 2017 ............................................................................................................. 10 4.2.3 Occupational Health and Safety Hazards............................................................................................... 10 4.2.4 Subsoil Law ................................................................................................................................................. 10 5 Russia, Nickel Mining Industry – Nickel Mine Production and Reserves ............. 11 5.1 Russia, Nickel Mining Industry – Nickel Mine Production .................................................................... 11 5.2 Russia, Nickel Mining Industry – Nickel Reserves .................................................................................. 13 6 Russia, Nickel Industry – Nickel Metal Consumption ............................................. 15 7 Russia, Nickel Industry – Nickel Ores and Concentrates, Exports and Imports Scenario ..................................................................................................................... 17 8 Russia Nickel Mining Industry – Top Active and Planned Projects ...................... 19 Russia Nickel Mining Market Overview and Forecast to 2020 GDMMNI008IDB /Published APR 2012 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form Page 2 Table of Contents 8.1 Russia Nickel Mining Industry – Top Active Projects ............................................................................ 19 8.2 Russia Nickel Mining Industry – Mine Profile ........................................................................................... 20 8.2.1 Severny Nickel Mine .................................................................................................................................. 20 8.2.2 Oktyabrsky Nickel Mine ............................................................................................................................. 20 8.2.3 Taimyrsky Nickel Mine............................................................................................................................... 21 8.2.4 Komsomolsky Nickel Mine ........................................................................................................................ 21 8.3 Russia Nickel Mining Industry – Planned Projects ................................................................................. 22 9 Russia, Nickel Mining Industry – Fiscal Regime ..................................................... 23 9.1 Russia, Governing Bodies ............................................................................................................................. 23 9.1.1 Ministry of Natural Resources and Environment of the Russian Federation .................................... 23 9.1.2 Federal Agency on Mineral Resources ................................................................................................... 23 9.1.3 Federal Service for Environmental, Technological, and Nuclear Surveillance ................................. 23 9.2 Russia, Governing Law .................................................................................................................................. 24 9.2.1 Subsoil Law ................................................................................................................................................. 24 9.2.1.1 Issuance ......................................................................................................................................................... 24 9.2.1.2 Types .............................................................................................................................................................. 24 9.2.2 Subsoil Use Licensing Regulations ......................................................................................................... 25 9.3 Russia, Rights and Obligations.................................................................................................................... 25 9.3.1 Rights ........................................................................................................................................................... 25 9.3.2 Obligations .................................................................................................................................................. 25 9.4 Russia, Key Fiscal Terms .............................................................................................................................. 26 9.4.1 Severance Tax ........................................................................................................................................... 26 9.4.2 Corporate Income Tax ............................................................................................................................... 26 9.4.3 Russia Property Tax .................................................................................................................................. 26 9.4.4 Capital Gains .............................................................................................................................................. 26 9.4.5 Withholding Tax .......................................................................................................................................... 26 9.4.6 Depreciation ................................................................................................................................................ 27 9.4.7 Loss Carried Forward ................................................................................................................................ 27 9.4.8 Value Added Tax ........................................................................................................................................ 27 10 Russia, Nickel Mining Industry – Competitive Landscape ..................................... 28 10.1 Russia, Nickel Mining Industry – Key Companies, OJSC MMC Norilsk Nickel (Norilsk Nickel) . 29 10.1.1 OJSC MMC Norilsk Nickel (Norilsk Nickel), Overview ......................................................................... 29 10.1.2 OJSC MMC Norilsk Nickel (Norilsk Nickel), Business Description ..................................................... 29 10.1.3 OJSC MMC Norilsk Nickel (Norilsk Nickel), Nickel Projects ................................................................ 30 Russia Nickel Mining Market Overview and Forecast to 2020 GDMMNI008IDB /Published APR 2012 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form Page 3 Table of Contents 10.2 Russia, Nickel Mining Industry – Key Companies, Mechel OAO (Mechel) ....................................... 30 10.2.1 Mechel OAO (Mechel), Overview ............................................................................................................ 30 10.2.2 Mechel OAO (Mechel), Business Description .......................................................................................