Russia's Industry and Trade Ministry supports zeroing out MET for rare earth metal projects, extending reduction factor for titanium

MOSCOW. April 4 (Interfax) - Russia's Industry and Trade Ministry proposes zeroing out the mineral extraction tax (MET) for rare earth metals (REM) until individual projects reach recoupment, and extending the reduction factor for the MET for titanium and zirconium.

Ivan Markov, Metallurgy and Materials Department Director of the Industry and Trade Ministry, during a round table discussion in the Federation Council on Ensuring the Economy's Needs for Solid Commercial Minerals, said that this "would allow us to accelerate developing the mineral resource base, thus ensuring the country's independence regarding the main types of metals and meeting the large demand."

Markov believes that zeroing out the MET is the most important and necessary mechanism.

The Finance Ministry is ready to consider proposals for preferential tax regimes for REM projects only if they are unprofitable. The budget has no funds to support projects that generate profit in the conditions of a deficit, State Secretary and Deputy Finance Minister Alexei Sazanov said previously.

JSC Rosatom Nedra, which includes Lovozersky Mining and Processing Plant (GOK) that is Russia's only enterprise that extracts and enriches the loparite REM ore, last year proposed zeroing out the MET for a long period for existing enterprises extracting REM.