(Sanitized) WORLD MINERALS STUDY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000600040041-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 45
• Document Creation Date: December 12, 2016
• Document Release Date: June 21, 2000
• Sequence Number: 41
• Publication Date: July 31, 1975
• Content Type: MF

75` r WORLD MINERALS
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Contribution World Minerals Study
S-07572
16 July 1975
BRANCH OER/U/RE
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Contribution World Minerals Study
USSR
Soviet mineral resources are unparalled in the world.
The USSR occupies a leading position with respect to reserves
of coking coal, iron and manganese ores, the principal
alloying metals, and many nonferrous metals, including
'copper, lead, and zinc.
Soviet production of many minerals and metals is ade-
quate to meet steadily growing domestic needs and to support
a high level of exports. The USSR has long been a leading
world exporter of iron, manganese, and chrome
ores and, in recent years has been able to export substantial
quantities of nickel, vanadium, and titanium. Aluminum and
copper have been exported in steadily increasing amounts in
the past decade. The USSR is an active trader of both lead
and zinc. Exports of these metals exceed imports, although
not by large amounts.
The USSR is not as well-off with respect to supplies
of some other minerals and metals -- fluorspar, tungsten,
molybdenum, cobalt, antimony, mercury, and tin. Current
production levels rival tY-,ose of world leaders but barely
cover or fall short of domestic needs, making some reliance
on imports necessary. Reserves of these minerals and
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Coking Coal
The USSR-reportedly produced 141 million tons of coking
coal in 1973 (see Table 1). Of this'total, an estimated
18 million tons consisted of byproducts of the coal prepara-
tion process ("middlings") not suitable for manufacture of
coke. Of the remaining 123 million tons, an estimated 9
million tons were exported to Communist and non-Communist
countries, and 114 million tons were used domestically to
produce 81 million tons of coke.
The USSR has substantial reserves of coking coal in
the Donets, Kuznets, Pechora, Karaganda, and Southern
Yakutsk coal basins. In view of growing domestic and
foreign demand, output probably will grow at a rate of
about 2% per year, or to a level of about 200 million tons
in 1990.
Iron Ore
The USSR has the largest iron ore reserves in the
world. According to a United Nations survey in 1970, Soviet
reserves of exploitable ore amount to 111 billion tons and
account for 44% of the world total. The major producing
area is the Krivoy Rog Basin in the Ukraine, but the Kursk
Magnetic Anomoly, located between Orel and Kharkov, pro-
bably is the world's richest deposit and will eventually
rival or surpass production at Krivoy Rog. Other important
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deposits are found in Kazakhstan, the Kola Peninsula, the
Urals, West and East Siberia, Ya}.utiya, and the Far East.
As the world's largest prod--!er of iron ore, the USSR
not only meets its own needs but more than half those of
the Communist countries of Eastern Europe. Small but
gradually increasing exports have gone to non-Communist
countries. In 1974 the USSR shipped nearly 6 million tons
to Austria, the United Kingdom,'West Germany, Italy and
Japan.
The USSR.has become concerned, however, about the
financial burden involved in development and expansion of
its iron ore base. Capital expenditures have increased
markedly in the past decade or more, not only to open new
mines but to construct beneficiation facilities to upgrade
ore which has been declining in average quality.
Although the USSR may gradually increase exports of
iron ore to non-Communist countries as production capacity
is expanded at Krivoy Rog and Kursk, it seems less in-
terested in self-financed construction of export capacity
than in arranging participation of foreign firms in ventures
to build such capacity. Substantial increases in Soviet
exports of iron ore to non-Communist countries in the
future will probably depend, in large part, upon the ex-
tent to which this type of arrangement is made. Finland
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is already helping to develop a Soviet deposit in Karelia in
return for future deliveries of iron ore. Other possible
schemes of this type involve United Kingdom aid in developing
iron ore mines on the Kola Peninsula and Japanese aid in
developing mines in Yakutiya.
The recent deal with West German firms for construction
of a large direct-, reduction plant near Kursk represents
another type of arrangement for foreign participation in
the exploitation of Soviet iron ore resources. The USSR
has agreed to pay on a cash basis as construction of the
plant proceeds, but according to terms-of the preliminary
agreement upon completion of the project in the late 1970s,
it will be able to earn foreign exchange by shipping
metallized pellets to West Germany.
Manganese
The USSR is the only major steel-producing country of
the world which is self-sufficient in manganese. Soviet
reserves of manganese, which are estimated at more than
two billion tons, are exceeded only by those of South
Africa. Soviet reserves are located principally in the
Ukraine and the Georgian SSR. Other deposits are located
in Kazakhstan, the Urals, West and East Siberia, and the
Far East. The quality of Soviet ore, with a manganese
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content of roughly 25%, is lower than that of other major
producing countries and the USSR currently has toheneficiate
all manganese ore.
The USSR is the world's largest producer of manganese
ore and has a substantial surplus for export. Exports have
averaged more than 1.2 million tons annually during the past
decade and reached a peak level of 1.5 million tons in 1974.
Over two-thirds of the exports normally go to other
Communist countries.
The USSR's plans for its manganese industry are re-
vealed, in part, by its solicitation in April 1975 of bids
from foreign firms for construction ofa ferromanganese
plant with an annual capacity of one million metric tons.
The Soviets have sought a completion date of 1980 for the
pl-nnt with provisions for payment in the form of products
from the plant. A venture of this type might limit or
even reduce Soviet expo=cs of manganese ore in the future,
but non-Communist countries, now receiving relatively small
amounts of Soviet ore, could receive substantial amounts
of manganese in?its more highly processed ferroalloy form.
Chrome
The USSR has claimed that its reserves of chrome ore
are the largest in the world. Precise information is not
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available to rzupport this claim, but there is evidence that
Soviet reserves, in any case, are very large. The USSR has
maintained high levels of production for many years which
have enabled it to meet domestic needs and to rank as the
world's largest exporter of chrome ore. Reports concerning
construction cf new facilities and plans to increase output
substantially also suggest a level of reserves high enough
to justify new investment.
Most of the Soviet reserves of chrome ore are located
in Kazakhstan. Additional reserves are in the Ukraine, the
Urals, Azei-baijan, and the Far East. The Donskoye group of
deposits near Khrom-Tau in Kazakhstan h.ve the higher grade
metallurgical ores.
Soviet exports of chrome ore, mainly to non-Communist
countries, have ranged between 1.0 and 1.2 million tons
since 1967. Some uncertainty about future Soviet exports
of chrome ore has been engendered, however, by recent
efforts of the USSR to interest Western firms in projects
for the construction of ferrochrome plants. Soviet pro-
posals that repayment be in the form of deliveries of
ferrochrome may indicate that the USSR inends to reduce
and possibly phase out exports of ore. A switch to the
more highly processed export -- which is being made by
other countries with resources of chrome ore -- would
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probably be particularly advantageous to the,USSR with its
sources of cheap energy. The amount of chromium equivalent
in, Soviet exports -- whether of ore, ferrochrome, or a com-
bination of the two -- may not be seriously affected, however,
and may increase if plans for increasing the output of ore
are carried out.'
Nickel and Cobalt
Soviet reserves of nickel are roughly equal to those
of Canada, but less than those of Cuba and New Caledonia.
Most of the Soviet reserves are located in copper-nickel
sulfide deposits at Pechenga, Monchegorsk, Norilsk, and
Talnakh in the Soviet North. The remaining deposits con-
and nickel-cobalt arsenides in Tannu-Tuva. Soviet reserves
of cobalt are also extensive and are found associated with
nickel in the deposits described above.
The USSR is second only to Canada in the production
of nickel and nickel products. Production has increased
steadily in the past decade, enabling the USSR to meet its
growing internal needs and to become an important supplier
of nickel to non-Communist countries. The USSR publishes
only fragmentary information-on its nickel trade but. Soviet
exports to these countries are estimated to have ranged
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from 10,000 to 20,000 tons since 1966. The USSR recently
announced that its nickel exports had increased to 52,000
tons in 1974 but gave no details concerning the recipients
of these exports.
The USSR has also steadily increased production of
cobalt, but there has been no surplus available for export
since 1966. Even then, exports, mainly to other Communist
countries, were small. Exports during the 1950s and early
1960s were reported to have been about 100 or 200 tons
annually.
The. USSR is undertaking a major expansion of its
nickel-cobalt industry, mainly in the Norilsk area. Devel-
opment of new mines has been underway for about a decade
and a contract has been signed with Finland for deliveries
of equipment for smelting of a ickel and copper concentrates.
The availability of nickel -- and possibly cobalt -- for
export is likely to increase as the Norilsk projects are
completed in the late 1970s and early 1980s. The USSR has
also negotiated with foreign firms for participation in a
project to develop nickel resources in the southern Urals.
Prospects for early action on this project are uncertain.
Vanadium
Information compiled by the US Geological Survey
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indicates that Soviet reserves of vanadium, estimated at
8 million short tons of metal content, are the largest in
the world. Soviet reserves are found mainly in the form of
titaniferous magnetite deposits distributed throughout the
country. The major source is the Kachanar deposit in the
Urals. Vanadium is also found in Soviet limonite ores. An
important source of this ore is the Lisakovsk deposit in
Kazakhstan.
Soviet production of vanadium is difficult to estimate
but domestic supplies have increased markedly since the
late 1960s as operations at the Kachanar deposit have been
expanded. Vanadium is recovered in the form of a converter
slag containing vanadium oxide. The charge for the con-
verter is high-vanadium pig iron produced from Kachanar ore.
The ore charge for the blast furnace was improved con-
siderablyby the construction of a facility to pelletize the
Kachanar concentrates.
The USSR has reported exports of 35,000-40,000 tons
of vanadium slag and one or-two thousand tons of ferro-
vanadium since 1967. Earlier in the 1960s the USSR imported
small amounts of vanadium pentoxide from Finland to ease
tight domestic supplies.
Soviet production of vanadium will.probably increase
in the years ahead as exploitation of the Lisakovsk deposit
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is stepped up. The complex at Kachanar has reached rated
capacity in its present form, but plans have been announced to
build a new iron ore mining and concentrating complex nearby.
The time table for construction has not been indicated,
however. In light of these plans some growth in Soviet ex-
ports of vanadium seem possible but the amounts cannot be
estimated.
Aluminum
The principal Soviet reserves. of bauxite are located in
the Urals, Kazakhstan, the Boksitogorsk area near Leningrad,
and the Onega area near Archangel. they have been insuf-
ficient both in quantity and quality to meet Soviet needs.
Efforts to develop alumina production from non-bauxite d!es
have met with some success. Alunites and nepheline syenites
have been processed to yield substantial quantities of
alumina but the methods employed have proven costly. At
present, no new facilities are being constructed to use
these materials even though reserves are extremely large.
As a result of the deficiencies in domestic supplies, the
USSR currently relies on imports of bauxite and alumina
for about 40% of the raw material needs of its aluminum
indus ry.
The USSR ranks second only to the United States in the
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production of aluminum and second only to Canada in the ex-
port of the metal and its manufactures. Most of the Soviet
exports are to other Communist countries.
To meet future raw material needs the USSR plans to
increase imports of bauxite and alumina as well as domestic
production of bauxite. Guinea and Yugoslavia are expected
to provide the largest shares of increased imports but sup-
plies are being obtained from other countries as well.
Increases in production of bauxite are expected from esta-
blished mining centers in Kazakhstan and the Urals and from
the newly opened Onega mines near Archangel. New deposits
in the Komi ASSR apparently have been found to be suitable
for exploitation but development of the mines will probably
take several years.
As in the past, a large share of increased aluminum
output will probably reach export markets. The USSR has
clearly indicated an interest in arranging future deliveries
of aluminum to non-Communist countries in payment for help
in expanding its aluminum industry. Extensive negotiations
have been conducted with US and French firms for aid in
constructing large complexes, each to include a one million
ton-per-year alumina refinery and a 500,000 ton-per-year
aluminum reduction plant. Formal contracts have not yet
been signed, however, and probably only one of these major
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