Igor Tikhov, Honorary Metallurgist of Russia, who was at the helm of Krastsvetmet, Russia's major producer of precious metals, for more than 11 years, sums up his work with the company on the eve of its 70th anniversary, gives his assessment of what is being done by the new management team and talks about his new projects.
The website of Krastsvetmet says you are the Chairman of the company’s Board of Directors.
Nominally, I am really the Chairman of the Board of Directors of OAO Krastsvetmet and will occupy this position until the next meeting. However, at my request, my powers were terminated starting from September 1, 2012 due to my move to Moscow. And also because I focused on other projects, the most important of which is the project involving rare earth metals.
What is this project about? Could you please describe it in more detail?
I was asked to take up the project aimed at developing rare earth metals production in Russia based on the facilities of the Solikamsk Magnesium Plant (SMP) and Lovozero GOK (mining and concentrating mill) in the Murmansk Region. The project will be consolidated on the base of the Solikamsk Magnesium Plant. Nafta Moskva is one of the owners.
The project structure is based on SMP, which is the oldest enterprise in the rare metals industry producing magnesium from the 1930s. Incidentally, it turned 75 on March 14. In the 1970s, the company started to produce rare metals from the loparite concentrate supplied by Lovozero GOK. Thus, we have there diversification split between two lines of business: magnesium and rare earth metals. Today we are talking about the development of rare metals and rare earth metals production, which includes niobium, tantalum, titanium and rare earth concentrate.
Currently, this is the only group of companies, which is an alternative supplier of rare earth metals to the world market besides China. Modern technologies are impossible without rare earth metals. Major consumers of rare earth metals are such countries as Japan, France, Germany and Austria.
In which sectors are these metals used?
They are used to produce catalysts for the petrochemical industry, synthetic rubber, special polishing and machining blends for the glass industry, especially in high-precision optics, and it is very important that they are also used for magnets. Magnets are now encountered virtually in all spheres of life. In the first place, this is the energy sector, including the renewable energy like wind farms, turbines or rotors. Lanthanum is used in catalysts; cerium – to manufacture polishing mixtures; praseodymium and neodymium - in magnets. Every modern phone and smart phone uses some of these metals. The heavy group, which includes erbium, terbium and yttrium, covers chips, electronics, the nuclear industry and nuclear power stations.
Unfortunately, it so happened that in Russia these metals were not separated. That is to say that historically their separation occurred outside this country - in Kazakhstan and Estonia.
What are the tasks you pursue?
First, we are going to make the brand of the Solikamsk Magnesium Plant emerge in the world market as a manufacturer of finished products, and not just concentrates; in other words this company will turn out separated compounds of rare-earth oxides. We also want to help Russia regain its right to be a member of the world market for rare earth metals. Second, out task is also to create a separation facility in Russia. This should be something more advanced than what exists in Estonia and Kazakhstan. It means that we shall create a technology that will separate the metals of all groups: light, medium and heavy. Third, we are going to strengthen the resource base by way of commissioning new rare earth deposits containing all groups of these metals.
We have already entered into a partnership with the giants of this industry, global consumers of such metals - Solvay (Belgium) and BASF (USA). It is important that these companies are willing to share their technology with us. We also plan to start working with Japanese companies. Our positioning in the global market pursues the aim of being a reliable, stable and predictable supplier of separated rare earth metals.
Do you mean to say that everything will go abroad?
No way. We are getting ready to take part in the program entitled "Development of the Russian industry up to 2020." Section 15 of it deals with the development of rare earth production. Of course, we shall be one of the main participants in this program, because we are the only ones with real assets in Russia who work and produce finished goods, and all of it is done successfully.
We see ourselves within this program as taking part in producing magnets for Russian factories and also catalysts and goods required by Rosatom.
What is your personal position in this process?
Project Manager for development. Now I'm doing this project. It is an urgent task to set it going, to launch it. At the same time, other projects cannot be excluded in the future.
Other projects?
I advise my colleagues in the business of precious metals, mining, chemical and metallurgical beneficiation and recycling of utility waste. My colleagues are Polymetal, Metallurgy of Precious Metals and others.
Is it really true that the technologies for recycling oil industry catalysts and autocatalysts, which are claimed to be used by Metallurgy of Precious Metals, are so innovative?
MPM has several technologies and they are of great interest. Why is the MPM approach so fascinating? It is because they attract professional consultants and experts deeply versed in the field. They use their knowledge, skill and experience. The result is an efficiently done job. Another advantage is that any problems are resolved quickly. And this is done not only by their experts, but also via outsourcing.
That's the approach. Great administration. Correct work with industry professionals. The company's flexibility. Economic efficiency. All this gives a significant competitive edge and results.
MPM is able to maintain the position of effective startup. And it's nice to see. I hope they will not rest on their laurels.
In your opinion, what is the attitude of the industry to such players?
I believe that the industry needs to accept them and help. Russia has always a somewhat flippant opinion of small companies. But the future is theirs. By the way, there is some very good news to prove it - if large-scale companies in Russia posted from 2 to 3 percent of growth last year, the start-ups showed up to several tens of percent. Of course, their basis is different, but nonetheless this looks significant.
I think such enterprises have a very good future.
How do you assess the human resources of the industry?
Unfortunately, engineers leave the industry. Specialists leave it too. Of course, the level of technical education has dropped. We encounter more and more problems with this. And not only Russia is facing this problem with engineers, but the whole world as well. Just five years ago I was asked by our partners in Sweden to help them find chemists, analysts, miners and dressers.
But, as in all times, a lot depends on the individual. If a person is able to educate himself even after having been poorly trained, if he or she wants to work, develop, such a person will always reach his or hers goals. However, if there are just foppish ambitions, it means you are apt to prefer trade (smiles).
How do you evaluate the research work in the industry?
Unfortunately, it is the same problem. This part of the industry is actually non-existent. But there is a positive trend. For example, Krastsvetmet is currently doing a big thing. One of their latest initiatives was to establish an experimental and technological center. And this is a very timely move. I think it is a good idea. Yes, it involves a lot of fuss and is meant for a long term. But the project is sure to yield some results. I fully support this idea. That is, I believe that this centre may develop new technologies, collect licenses and ensure their progress. The center may also be a place where they will train specialists: people both engaged in research and production. Take it as my sincere reverence toward Krastsvetmet.
Since you touched upon Krastsvetmet, could you share your feelings after leaving the company? Do you think you could give some more to this enterprise?
Before my departure, I was honest enough to prepare a strategy for the future, since the previous ten-year policy was realized. Actually, I was really surprised to see that when started to sum up what had been done.
All in all, it comes to 11 years as CEO and 11 months as Chairman of the Board of Directors. An interesting figure it is. Of course, such things should be assessed by other people. But I'm happy. Now, Krastsvetmet is a brand in the world market. Of course, this was not so in 2000, when we were largely dependent on Norilsk Nickel, refining its concentrate. Now this is a stand-alone plant, well known and respected across the world’s markets. I do not accept the word "pride" in this case, but I am pleased with what is done.
What kind of mood you are in on the eve of the 70th anniversary of Krastsvetmet?
Of course, I join all the congratulations addressed to the hero of the day. Krastsvetmet is not a stranger to me. Therefore, I congratulate everyone there as my very own people. I wish Krastsvetmet a long life and good health (smiling). I think that the period of positive changes has not ended. It continues. And I think that the new approaches practiced by the new management are timely and reasonable. And I wish God could give us a chance to celebrate the company’s 75th and 80th and 100th anniversaries together.
Alexander Shaburkin, Rough&Polished, Moscow