Investment protection and promotion agreement concluded for Fedorova Tundra

05.04.2021
Press release

The Ministry of Economic Development of the Russian Federation, Ministry of Arctic and Economic Development of the Murmansk Region and Fedorovo Resources have signed a trilateral agreement to protect and promote investment in the project to develop Fedorova Tundra, a platinum group metals deposit.

Investment protection and promotion agreements (IPPAs) are a new type of government support for major investment projects. They provide for reimbursement of costs to develop energy, transportation, utility, social and digital infrastructure in the amount of taxes paid.

This is the third IPPA in respect of an Arctic investment project on the Kola Peninsula. Fedorova Tundra is one of the key projects in the region. Apart from significantly increasing tax revenues on various levels and creating new jobs, it will also open up additional opportunities for the mining and metals sector, which is the region’s core industry, as well as for local contractors and suppliers.
Tatiana Russkova
Minister of Arctic and Economic Development of the Murmansk Region

The Fedorova Tundra project envisages the construction of a new mining and metallurgical facility in the Murmansk Region focusing on the production and concentration of copper-nickel ores containing platinum group metals. Investment in the project is expected to exceed RUB 60 bn. Fedorova Tundra is also projected to have a multiplicative impact of creating some 5,000 new jobs in the region, including 1,200 highly paid positions for skilled workers to be directly involved in the production process. The project should boost the Murmansk Region’s GRP by about 1,1% per year, while the overall value to be added by it in the period until 2045 is estimated at over RUB 460 bn.

Development of a deposit as large as Fedorova Tundra requires a lot of time and investment. The government support and guaranteed stability of the economic and legal framework throughout the project reduce risks for investors and makes it more appealing to use advanced and eco-friendly technologies in building the infrastructure. Fedorova Tundra is crucial for the economic development of the Murmansk Region and the entire Arctic region.
Alex Gostevskikh
CEO of Fedorovo Resources

Fedorovo Resources, the operator of Fedorova Tundra, is committed to ensuring full compliance with the Russian laws at every stage of the project and follows the world’s best practices and standards for sustainable management of natural resources and stakeholder engagement.

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