“Russian Precious Metals Market should be Developed and Supported”

On July 18 in Krasnoyarsk there was held an international conference called “Precious Metals Market of Russia – a Look into the Future” dedicated to the 65th anniversary of OAO Krastsvetmet and the domestic market of precious metals in Russia.

Altogether, the conference was attended by 215 delegates from 74 companies located in 12 countries around the world. The conference participants included the representatives of the biggest Russian mining companies (Norilsk Nickel, Polyus, Polymetal, and Amur), as well as the representatives of such international companies as Impala Platinum, Anglo Platinum, Johnson Matthey, Vale Inco, Engelhard/BASF, Xtrata Nickel, Kinross Gold, Metalor Technologies SA and others.

The conference was opened by Vladimir Rybkin, heading Russian Gohran (the State Depository for Precious Metals and Gems). The conference participants were greeted by Valery Rudakov, Chairman of the Board, Polyus Zoloto, and by Evgeny Vaganov, Rector of the Siberian Federal University. Plenary reports were delivered by Vladimir Sovmen, General Manager, ZAO Zolotodobyvayushchaya Kompania Polyus; Alexander Ryzhov, Chief of Department for Tolling Operations and Precious-Metals-Related Raw Materials, OAO GMK Norilsk Nickel; Michael Steel, Consultant, Johnson Matthey; Valery Braiko, Chairman of the Gold Industrialists’ Union.
The conference participants gave major priority to growth outlooks and evaluation of precious metals consumption level in Russia, as well as to the future development of the jewelry market. Proceeding from the conference results, its participants developed a string of proposals permitting to increase the precious metals consumption level inside the country.

The keynote report was delivered by Igor Tikhov, General Manager of OAO Krastsvetmet. He pointed out that the market of precious metals was of basic importance for the entire Russian economy. Precious metals are used in an extremely great variety of fields, including for instance chemical, petrochemical, gas-and-chemical, and automotive industries and electronics. Russia builds up its supplies of platinum metals to the world market used to produce automotive catalysts. The use of products made of precious metals in such fields as the pharmaceutical and construction industries acquires an ever greater importance, since these are the industries, which are most successfully and rapidly developing in this country for some time past. It is noteworthy that the jewelry industry accounts for major world consumption of precious metals, particularly gold. Bearing in mind that jewelry in this country has always been in great demand, there is an enormous potential for further growth. However, it is necessary that precious metals be also used as a financial instrument. The banking system today is not only ready to act as an intermediary, but also as an economic hub in financing the flows of precious metals between mining and processing companies. In his address the speaker dwelled on the role played by precious metals in each of the mentioned industries stressing in conclusion that “all the spheres of social life and economy are permeated by precious metals and we call everyone to pay attention to the Russian market.”

It is worthy of note that the Krasnoyarsk Non-Ferrous Metals Plant named after V.N. Gulidov is the only manufacturer in the world, which takes all the existing types of raw minerals to process them into eight precious metals: platinum, palladium, rhodium, iridium, ruthenium, osmium, as well as gold and silver.
Currently, OAO Krastsvetmet refines about 50% of Russia’s gold and 98% of platinoids. Among Russian companies, Krastsvetmet is the most conspicuous enterprise on the international market, since the entire amount of precious metal produced by OAO GMK Norilsk Nickel, the world’s biggest manufacturer, is refined by Krastsvetmet and exported to the world market bearing the Good Delivery status (meaning high quality supplies).
The enterprise is collaborating with 23 companies spread across the world’s four continents and continues to expand its cooperation in rendering refining services and supplies.

During the last two years Krastsvetmet was building up silver refining. In 2009, the company plans to boost silver refining from 600 tons to 1 000 tons. Manufacturing of platinum catalytic gauze, production of chemical compounds based on precious metals and fabrication of jewelry remain the major lines of the company’s activity.
OAO Krastsvetmet is owned by the Krasnoyarsk Territory, a constituent entity of the Russian Federation, represented by the Krasnoyarsk Territory Administration possessing a 100 percent block of shares.