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10% duty on tungsten: the government "for" - who can be against?

15 January 2014

Government of the Russian Federation was set at the rate of 10% of the customs tariffs imposed on exported tungsten ore and concentrate. The document also points out that prior to 2012 on the export of tungsten does not impose any duty. With this resolution for Dmitry Medvedev's signature can be found on the website of the Cabinet of Ministers. 10% of the fee was established the government's decision in November 2012 for one year due to the ever increasing demand of domestic steel enterprises tungsten ore.

Tungsten concentrate is used for the production of tungsten carbide products, which are used in the manufacturing industry, the defense industry and the electrical, engineering drilling, as well as for the manufacture of alloy steels. It is clear that in the tungsten raw material demand is quite large under these conditions, that to domestic suppliers, they are not able to fully satisfy the demands of Russian metallurgical enterprises. A tungsten acquisition of on import, even without taking into account the fee, it is hardly possible.

By setting the duty on tungsten ores and concentrates, the government expects that a significant portion of the exported raw materials — 50 percent — will be directed to the domestic market.

Data provided by the Cabinet of Ministers, show that in 2011 the percentage of exports amounted to 48%, in 2012 about 74%. After the introduction of 105 export duty was reduced in the first six months of 2013 by 30%, while load enterprises increased from 22% to 34%.

Nevertheless, maritime boundary GMPR Committee as well as the leadership of the JSC «Primorsky GOK» and Open Joint Stock Company «GC» AIR «signed an appeal to the Government with a request to abolish the notorious duties in order to avoid a possible bankruptcy and stops production mining and processing of tungsten.

The letter, addressed to the Government, gives an idea of ​​the situation in the coastal tungsten production associations, in particular the emphasis on the fact that the main consumers of tungsten products is the company 'Gidrometallurg «(Nalchik), the owner of which, in turn, is the company» Wolfram «. However, the JSC «Gidrometallurg» more than a year do not support trade relations with enterprises of Primorye, in spite of a forced reduction in the price of tungsten concentrate almost doubled. And the company «win» shareholder which is also «Tungsten», and does not seek to procurement, in spite of the existing agreements.

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