Despite boasting rich mineral deposits, a mining boom is unlikely to catch up with Russia anytime soon. A growing number of domestic miners will be forced to put the brakes on investment as mineral prices continue to trend lower, while foreign investors struggle to establish a foothold due to restrictive regulations.

BMI Industry View 7

SWOT 9

Industry Forecast 11

Coal: Modest Expansion, Shifting To The East 11

      Modernisation Of Coal Sector 13

      Exports Shifting From Europe To Asia 14

      Constrained By Infrastructure 15

      Table: Russia - Distance From Coal Production Area To Shipping Seaport 16

      Better Economics For Coking 17

      Table: Coal Production Forecast (Russia 2010-2018) 19

Gold: No Golden Years In Sight 20

      Polyus Gold Takes Charge 21

      Table: Gold Production Forecast (Russia 2010-2018) 22

Iron Ore: Challenges Ahead 22

      A Hard Blow To Miners If Crimea Crisis Escalates 24

      Infrastructure Developments A Boon 25

      Table: Iron Ore Production (Russia, 2010-2018) 25

Nickel: Subdued Growth, Risks Lurk 25

      Risk To Outlook 27

      Table: Nickel Mine Production (Russia, 2010-2018) 28

Palladium: Little Optimism As Norilsk Cuts 28

      Table: Palladium Production (Russia 2010-2018) 31

Platinum: Struggling To Head Higher 32

      Table: Russia - Largest Platinum Projects 33

      Table: Platinum Production (Russia 2010-2018) 34

Industry Risk Reward Ratings 35

Risk/Reward Ratings 35

      Kazakhstan On Top; Russia Not Far Behind 36

      Table: Mining Risk/Reward Ratings 37

      Germany & Ukraine: Key Changers On Last Quarter 37

      Weak Commodity Prices Weigh On Rewards Across The Board 38

Risk/Reward Ratings 38

      Rewards 38

      Industry Rewards 38

      Country Rewards 38

      Risks 39

      Industry Risks 39

      Country Risks 39

Regulatory Development 40

Foreign Investors To Find Little Success 40

Tax Regime 41

Corruption To Remain Key Concern 42

      Table: Europe - Mining Regulatory Outlook 42

      Table: Political Overview 43

Commodities Forecast 45

Commodity Strategy 45

      Ferrous Metals: 45

      Iron Ore: Price Slump Overdone, Stabilisation In Sight 45

      Steel: Price Forecast Revised Up 46

      Non-Ferrous Metals: 48

      Aluminium: Recent Break Signals Multi-Month Strength 48

      Copper: Subdued Prices Into Q314 49

      Lead: Prices To Strengthen As Deficit Deepens 50

      Nickel: H214 Rally Unlikely 51

      Tin: More Resilient Than Other Metals 52

      Zinc: Sustained Break Unlikely 54

      Table: Select Commodities - Performance & BMI Forecasts 55

Competitive Landscape 57

Key Players 57

      Table: Russia - Key Financial Data For Select Mining Companies 58

Company Profile 59

Norilsk Nickel 59

      Company Overview 60

      Company Strategy 61

      Table: Norilsk Nickel - Key Financial Data 62

Polyus Gold 64

      Table: Polyus Gold - Financial Data 65

SUEK 67

Regional Overview 70

Europe Overview 70

      1. Coal Production Growth Mainly In The East, But Upside In Germany 70

      2. Iron Ore Mining To Come Under Threat 72

      3. More Stringent Regulation On The Horizon 74

      Table: Europe: Mining Regulatory Outlook 74

      4. Long-Term Promise For Rare Earths 75

      5. Public Opposition To Present Major Downside Risk 76

Global Industry Overview 77

Challenges 77

      Table: Mining - Select M&A Deals 81

Cause For Optimism 84

Methodology 91

Industry Forecast Methodology 91

Sources 92

Risk/Reward Rating Methodology 93

      Table: Weighting Of Indicators 95

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