China and Russia Expand Agreement for Arctic Strategic Resource Development

Russian nuclear-powered icebreaker, the Sabir, in Arctic waters. The Sabir is operated by Rosatom, which was appointed administrative control of the Northern Sea Route infrastructure in 2018.


“The Chinese company will be a main partner in the development of the major lithium field located in the far northern Russian region.”


Russia has signed an agreement with China to partner in the development of a major lithium field in Russia’s far north according to the excerpted article from Norway-based The Barents Observer. It is likely that Russia would like to mine its lithium fields on its own, but the contract demonstrates Russia’s need for a partner. China has already partnered with Russia for Arctic development of oil, LNG, and other resources. The agreement gives China some latitude to exploit territory it would not otherwise have access. At the same time, Russia would be hard-pressed to develop the lithium field without outside capital investment that only China can provide at this time. The partnership agreement also comes at a time when China has shown it is eager to expand its presence in the Arctic and gain access to unexploited Arctic resources.[i]


Sources:

Atle Staalesen and Denis Zagore, “Chinese Developers come to mine lithium in Murmansk”, The Berents Observer,(independent Norwegian news site in Russian and English currently blocked in Russia), 1 August 2024. https://thebarentsobserver.com/en/2024/08/chinese-developers-come-lithium-mine-murmansk

The company MCC International Incorporation Ltd will join the development of the Kolmozerskoye lithium resources in the Kola Peninsula. The Chinese company will be a main partner in the development of the major lithium field located in the far northern Russian region. The company will take part in exploration of resources, development of technology, as well as production, the Russian license holder stated. The accompanying Nornickel Telegram photo is captioned “Hun Ventao, Vice President of Chinese company MCC International Incorporation Ltd signs deal with Igor Demidov, head of the Polar Lithium.”

The Russian edition of the Barents Observer reports that the Kolmozerskoye field is owned by Polar Lithium, a company controlled by Nornickel and Rosatom’s ore mining division. Nornickel’s Telegram channel stated that “The MCC International knows how to project mine processing plants, it possesses its own ore enrichment and lithium production technology.”

The Chinese company will reportedly also take part in the development of battery production.  “The experienced Chinese partner will help us more quickly create a high-tech battery industry in Russia,” according to Nornickel.

According to the developers, the new mine and processing plant are planned to be ready for production in year 2030. It is to be able to annually process up to 2 million tons of ore and produce 45,000 tons of lithium hydroxide and carbonate.

Nornickel is running the major nickel and copper mines and metallurgical plants in and around Monchegorsk, Kola Peninsula. The joint venture with Rosatom’s ore mining division was established in 2021.


Notes:

[i] See: Les Grau, “Chinese Icebreaker Sails to The Arctic,” OE Watch, 09-2023. https://fmso.tradoc.army.mil/2023/chinese-icebreaker-sails-to-the-arctic/


OE Insight Summary:

CHN and RUS will partner to mine lithium in the Arctic, giving CHN additional access to the Arctic, while providing RUS a much-needed partner.

Image Information:

Image: Russian nuclear-powered icebreaker, the Sabir, in Arctic waters. The Sabir is operated by Rosatom, which was appointed administrative control of the Northern Sea Route infrastructure in 2018.
Source: https://c4.wallpaperflare.com/wallpaper/645/918/543/the-ocean-sea-icebreaker-the-ship-wallpaper-preview.jpg
Attribution: Public Domain