Joint Mining Ventures in the Former Soviet Republics – A Slow Beginning

In 1990, the former Soviet Union ranked first worldwide in the production of asbestos, chromium, iron ore, iron and steel, lime, manganese, mercury, nickel, peat, potash, and titanium. Since the middle of this century, that nation had maintained one of the world's most valuable mineral industries, ranking number two in 1950 and number one in 1990. It is clearly an enormous mining industry, with more than 1300 enterprises and an estimated employment base of 1.2 million persons (Table 1). Despite its size and historical achievements, however, the mining industry of the 1990s in the former Soviet republics is encountering problems in performance, efficiency, transportation and utilization. The industry operates below full capacity and is plagued by outdated technology and equipment, rising production costs, capital shortages and labor strikes, in addition to general economic deterioration and civil unrest. Attempts to boost domestic minerals supply in the republics so far have failed because of economic difficulties. And the republics lack the financing required to initiate new, large-scale development projects.