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Transforming Subsoil Use in a New Environment

16 June 2022
Трансформация развития недропользования в новых условиях

Business and government need to ensure that the industry develops in the new geopolitical environment

«The worsening geopolitical situation poses risks to mineral production and consumption, such as limiting or completely banning the supply of import-dependent types of minerals and limiting imports of technology and equipment for geology and extraction of minerals. To overcome these risks, the country must implement a scenario of full import substitution and self-sufficiency, including in critical minerals,» said Dmitry Tetenkin, Deputy Minister of Natural Resources and Environment of the Russian Federation.

«The structure of our mineral resource base is changing. Whereas, for some time, our mineral resource base was formed of large deposits. They were the basis of production and provided the entire output. The technology, methodology, and transport infrastructure were focused on these deposits. The success of the industry now depends on a reorientation towards unconventional, deep-seated deposits. This is a global trend,» said Andrey Korniychuk, General Director of Digital Subsurface Use.

PROBLEMS

Sanctions lead to restrictions on the supply of equipment

«The big question is about import substitution of machinery. Not just for exploration, but also for mining. It seems to me that there will be limitations in the next three to five years on the amount of equipment we can produce. So we need a combination of supplies from abroad and an increase of production in Russia,» said Sergey Stepanov, Senior Vice President at Norilsk Nickel.

«We have two problems, import substitution and software, such as geological software. We have few domestic equivalents [for them]. If, for example, software such as Micromine stops updating and license validity ends, it could be a problem for the industry,» said Sergey Zhuravlev, Vice President of Government Relations of Polyus.

There is no authority in Russia responsible for the analysis of inter-industry balances

«There is a need for systematic mechanisms to analyze inter-industry production chains, inter-industry balances. It seems to me that there is currently no institution in Russia responsible for maintaining and analysing inter-industry balances. As a result, there is no holistic picture of bottlenecks and potential points of growth. This is an obstacle to strategic planning, the development of the economy as a whole, and of individual industries,» said Andrey Korniychuk, General Director of Digital Subsurface Use.

SOLUTIONS

Increased federal funding for exploration

«Our plans are to focus budget funding in two main areas. They are import-dependent raw material sites and the revaluation of large unallocated sites. As of this year, federal funding for exploration has been increased. We are carrying out work to find promising sites,» said Dmitry Tetenkin, Deputy Minister of Natural Resources and Environment of the Russian Federation.

State support for the industry

«Measures should be taken by the government to accelerate the commissioning of new deposits. We suggest that the state focus specifically on critical minerals. The state can focus on finding critical and imported minerals, such as beryllium, rare earth metals, titanium, chromium, copper and bauxite. We need to have access to a unified system of geological information,» said Sergey Zhuravlev, Vice President of Government Relations of Polyus.

Technological integration

«What the industry needs now is a programme of technological integration that will preserve the accumulated technological potential. This systemic work is being done one way or another, but consolidated efforts are important here. A single subsoil user cannot produce a product of appropriate quality. By consolidating efforts and mechanisms, a much greater effect can be achieved,» said Andrey Korniychuk, General Director of Digital Subsurface Use.

Read more at the Roscongress Foundation Information and Analytical System roscongress.org