Russia's Polymetal May Invest in Rare Earth Project to Meet Electric Vehicle Demand

Russia's Polymetal will consider investing in the country's largest rare earth project Tomtor, which is being developed by the gold and silver producer's top shareholder. The chief executive of the company Vitaly Nesis said, according to the report of MOSCOW (Reuters).

Polymetal said in August that it is considering acquiring minority stakes in domestic rare earth minerals projects to tap into the growing demand for commodities used in the production of electric cars. Vitaly's brother, Russian businessman Alexander Nesis, holds the company's largest stake.

Polymetal CEO Vitaly Nesis told reporters on the sidelines of a conference in Moscow that the company's board of directors will consider investing in Tomtor in the eastern Siberian region of Yakutia in December. "We are likely to be talking about a small investment," he said.

The company previously advised on the technical development of the project, but the company explained it does not intend to change its main image as one of Russia's largest producers of precious metals. The world's major rare earth reserves used in the production of a wide range of high-tech goods from mobile phones to electric cars are currently concentrated in China.

"Tomtor is a world-class deposit, "Vitaly Nesis said, adding that Polymetal did not like other rare earth projects it had been looking at. Alexander Nesis owns 75% of the project and the remaining 25% is held by Cyprus-based Zaltama Holding Ltd. Until recently, Zaltama has been owned by the Russian conglomerate Rostec. Rostec withdrew from the project in August but did not disclose who the new owner was. The project is expected to be put into operation in 2022, and by 2024, a plant with an annual output of 160,000 tonnes of ore will be built.

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