Russian precious metals producer Polymetal International PLC is considering making a "small investment" in the Tomtor rare earths project in Siberia, Reuters reported Oct. 9, citing CEO Vitaly Nesis.
Tomtor is 75%-owned by ICT Group, which is controlled by Polymetal's top shareholder, Alexander Nesis, Vitaly's brother. The remainder is held by Cyprus-based Zaltama Holding Ltd., the report said.
Despite the proposed acquisition, Polymetal's focus will remain on precious metals, Vitaly Nesis said in the report. He had expressed interest in acquiring rare earth assets amid an expected rise in demand from the electric vehicle sector. The company had advised on technological development for the project, according to the newswire.
Tomtor, said to be the country's largest rare earths project, is scheduled to start production in 2022, while a 160,000-tonne-per-annum plant is expected to be built by 2024.
Russia has struggled to capitalize on its large rare earth reserves due to problems in developing deposits and production, according to an exclusive S&P Global Market Intelligence report in July.
