Private investment into geological exploration to fall by 10%

​Private investment into geological exploration might fall by 10%. Meanwhile in this economic situation the Government hopes for private investment in the sector, the Minister of Natural Resources of Russia, S. Donskoi, said.

The budget financing of geological exploration fell from 35.2 to 28.4 bln roubles due to the complicated foreign and domestic economic situation in 2015.

In these conditions our goal is to keep the rate by covering the lost Government funds by private investment and even increase its volume by means of forming competitive and attractive conditions, the Minister said. According to him, the Government is to primarily support the extraction where it is held today. Second, it should stimulate research works in new areas, where there are perspectives and possibilities of new large discoveries. And third, it should provide the study and development of scavenger reserves which form a significant reserve in supporting the reached extraction level.

It is extremely important to increase the attraction of foreign investment into the sector. There is a limited volume of investment capital in the foreign market of geological exploration - $10-12 bln, various countries compete for its attraction.