Rosatom buys Solikamsk Magnesium Plant - source
MOSCOW. Sept 30 (Interfax) - Russian state nuclear energy corporation Rosatom is finalizing a deal to buy Solikamsk Magnesium Plant (SMZ) and is looking into acquiring rare-earth assets abroad, a source in the nuclear power industry told Interfax.
The purchase of foreign rare-earth assets makes sense right now because prices have come down and Rosatom has obtained the government's approval to acquire foreign companies, he said.
Yakov Polunkin, the head of uranium holding company Atomredmetzoloto (ARMZ), which is part of Rosatom, said in May 2011 that the company planned to buy rare-earth metal mining assets in Russia, in particular SMZ. The uranium company is interested in the "entire process: enrichment, processing and production of rare-earth metals," Polunkin said. However, it was later reported that ARMZ, according to unofficial reports, had decided against buying SMZ.
The issue of restoring Russia's rare-earth industry arose after China, which provides around 95% of the world's rare-earth metals requirements, lowered export quotes on these metals (and analysts expect it will continue to do so), which led to a surge in prices.
Solikamsk Magnesium Plant exports almost all of its rare-earth products and tantalum compounds and around 60% of its niobium, magnesium and alloys.