Why are Russian RM and REM considered uncompetitive

18:21; 20 March 2025 year

The Chinese sell some rare metals for 70% cheaper than the Russian Federation. How is this possible when, as Magomed Gekhaev, advisor to the CEO of Rosatom Nedra, says, the average global profitability in the industry is no more than 15-16%, and the average cost of funding in mining countries is about 12%. How did the Chinese manage to bring the economy together and become the undisputed world leader?

There is no secret: since 2012, support measures have been introduced in China on an annual basis. In 2012, they began stimulating domestic demand by providing subsidies to consumers. Then they introduced a subsidy for research and development, and these were gratuitous grants. After a couple of years, they realized that these measures were not working and they could not make a fundamental step forward. Then subsidies were launched for mining enterprises according to the following scheme: the government paid 1,000 yuan per ton of extracted ore and up to 1,500 yuan per ton of enriched and divided ore.

The Russian Ministry of Industry and Trade is still debating whether it is worth directly compensating for costs, and which of the extracted metals should be prioritized.

"A story with support through OPEX can be effective, the only question is in counter obligations, we need to work out a mechanism," says Ivan Markov, Director of the Metallurgy and Materials Department of the Ministry of Industry and Trade of the Russian Federation.

Thus, the government makes it clear that it is not yet ready to offer such direct support to the industry.

Read the full version of the material <https://business-magazine.online/fn_1636588.html"&Rare Metals: Everyone is bluffing./a>/p>

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