Mining opportunities exist in Soviet Union

If miners are not already doing business in Western Europe, it will become increasingly difficult to do so after Jan. 1, 1993. As well, the Soviet Union is open for mining business. That was the message delivered by Dr. C.G. Hinde and Anton Akopian. Hinde is the editor of The Mining Journal of London, U.K. Akopian, the first ever Soviet official to address a Canadian Mineral Outlook Conference, works for the Ministry of Foreign Economic Relations in Moscow.

In Western Europe, where harmonization is under way in the 12 countries which will form the Economic Community in January, 1993, Canadian mining companies may find it difficult to become involved in the mining industry unless they are already there, Hinde said.

“If they are not already there, it shows a certain slowness of reaction. But, the possibility still exists to form partnerships with the European giants Metallgesellschaft, Outokumpu and RTZ,” he said.

At Mineral Outlook ’90, Akopian told delegates: “The ministry of metallurgy, which controls more than 2,000 industrial enterprises in the Soviet Union with a production volume worth more than 80 billion rubles per year, is negotiating with foreign firms for more than 70 additional joint ventures in mineral exploration, mineral processing of mine waste materials, the modernization of existing metallurgical works and mining partnerships with foreign firms in third countries.”

Only 17 such joint ventures have been registered to date. One is with a Canadian firm.

The specific types of joint ventures the Soviets would like to negotiate with Canadian firms, Akopian said, are in the areas of processing of secondary materials, reduction of the cost of the end product and small-scale mining operations in the USSR.

To date, investment has been on a joint venture basis but there are no limits on what can be negotiated; that is, complete ownership is possible. The Soviets are also prepared to invest in other countries as joint venture partners, he said.