Russia’s top oil producer, state-controlled Rosneft, has acquired Vostok Engineering, the company holding the license to operate the Tomtor rare earth metals deposit in Siberia. Tomtor is the largest rare earth reserve in Russia and one of the biggest in the world.
According to the Russian national companies registry, Rosneft gained control of Vostok Engineering on Wednesday.
In late 2024, President Vladimir Putin urged for the development of the Tomtor deposit, saying that companies holding these licenses must either invest in the projects or cooperate with others, including the state. He called the deposit “a strategic resource that the state needs now.”
Rosneft, led by Putin ally Igor Sechin, could accelerate the development of this valuable deposit.
Tomtor is considered one of the world’s three largest rare earth metal deposits and is rich in rare earth content. It also contains the world’s largest niobium deposit, a metal used in automotive, aerospace, and shipbuilding industries.
Earlier this year, Tomtor was discussed as a potential area for U.S.-Russian cooperation on rare earth metals, pending a peace agreement in Ukraine, according to a source close to the Russian government.
Countries like Russia and the U.S. are seeking to develop domestic supplies of critical and rare earth metals to reduce dependence on China. However, experts emphasize that refining capacity, not just mining, is essential to break China’s dominance in these minerals.
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