Friday, October 10, 2008

Marubeni eyes investment in Russian tungsten project - Oct-7-2008

Reuters reported that Japan's Marubeni Corporation is studying a project to restore a major tungsten and molybdenum deposit in Russia's North Caucasus region together with Russian firm Wolfram Co.

Mr Pyotr Sukharkov first deputy general director of Wolfram said that restoring production at the Tyrnyauz Tungsten and Molybdenum Mining and Concen trating Plant, which closed early this decade, would require investment of about USD 120 to USD 130 million. He added that "The plant simply could not compete as tungsten prices fell and the market was flooded with tungsten. Now, the situation is different. Tungsten prices are higher and we believe this project has the right to exist."

The Tyrnyauz plant is located in the Russian republic of Kabardino Balkaria in the Caucasus Mountains. The republic's government owns the majority of the project and Wolfram Co has a 25% share.

In 2007, Russia lifted an import duty on tungsten ore and concentrate in a move that allowed Wolfram to secure more raw materials from abroad, chiefly from Canada, Brazil and Africa.


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