Rosneft Acquires Tomtor Rare-Earth Deposit, Boosting Strategic Mineral Production

Russia’s state-run oil giant, Rosneft PJSC, has acquired the Tomtor rare-earth deposit in Siberia, as revealed by filings in the country’s national commercial registry.

Recognized as Russia’s largest rare-earth deposit, Tomtor plays a crucial role in Moscow’s plans to enhance domestic production of strategic minerals vital for defence and high-tech industries. Additionally, this project could open avenues for cooperation with the United States if a peace agreement is reached regarding the ongoing conflict in Ukraine.

On May 20, Rosneft, under the leadership of Igor Sechin—a long-time ally of President Vladimir Putin—secured complete control over Vostok Engineering, the operator of the Tomtor project.

According to the Ministry for the Development of the Far East and Arctic, the deposit contains an estimated 154 million tonnes of ore, encompassing rare-monazite and pyrochlore, as well as valuable elements like niobium and scandium.

President Putin has previously expressed dissatisfaction with the delays in developing Tomtor. In November, he mandated that the project be expedited, either by its existing owners with external investors or through state support. The Western sanctions following Russia’s 2022 invasion of Ukraine have hampered progress, particularly by restricting access to critical technologies required for site development.

World’s Fifth-Largest Rare Earth Reserves

Prior to the conflict, Russia aimed to invest $1.5 billion to position itself as the world’s second-largest rare earth producer after China by 2030. As per the U.S. Geological Survey (USGS), the country possesses the fifth-largest reserves globally, estimated at 3.8 million tonnes, trailing behind China, Brazil, India, and Australia. Russia’s target is to capture up to 12% of the global market within five years.

Rosneft’s acquisition aligns with a broader trend of oil companies diversifying into critical minerals. In 2023, ExxonMobil was among the first to announce plans to extract lithium from brine using direct lithium extraction (DLE) technology in the southern United States. Similarly, Chevron and Occidental have shown interest in lithium ventures.

Governments are also pursuing similar strategies. Saudi Arabia has secured multiple mining deals with companies such as India’s Vedanta and China’s Zijin Group. In January, the kingdom launched a joint initiative between state oil firm Aramco and mining company Ma’aden to expand lithium production.

(With files from Reuters)