Russia’s Far East rolls out the welcome mat for investors

Another mention of Tigers Realm, I believe Russia has opened its doors to foreign investment and TIG is going to benefit big time.  The BOD are connected to the right people in Russia, im very happy to hold this stock long term.

This is from http://www.atimes.com/article/russias-far-east-rolls-welcome-mat-investors/

Russia’s government is offering tax breaks, special economic zones and other incentives to investors in the Far East areas of the country, including the Free Port of Vladivostok, to broaden the economy from natural resource extraction to processing industries and services.
“The Far East shares a border with some of the most dynamically developing economies in the world,” said the Minister for Development of the Far East Alexander Galushka. “It’s key for us to harness that economic power for the benefit of developing our eastern territories,”

The Far East region has long been known as Russia’s resource base, containing oil and gas deposits and about half of the nation’s gold and silver reserves.

Companies also mine the region for about 70 types of ore, including zinc, coal, iron ore , titanium, platinum and manganese. But the largest deposits are typically in hard-to-reach areas, with undeveloped transport and energy infrastructure.

Analysts at the Center for Economic and Financial Research and Development said the government now seems committed to providing the infrastructure support needed for development.

“The state is ready to build roads, add energy sources and other necessary engineering and utilities infrastructure for the mining projects,” according to the center.
Energy boom

Investment took off in the Far East from 2000 to 2005 when oil and gas projects in the Sakhalin Oblast territory attracted about 96% of foreign direct investment.

This allowed Russia to export oil and liquefied natural gas (LNG) to Asia-Pacific nations.
Still to come is the Sakhalin-3 oil and gas project, while Japan’s Mitsui & Co. has said it will invest more than $1 billion to add a third production line to the Sakhalin-2 LNG plant, which is expected to come online in 2021.

More recent investors include Australia’s Tigers Realm Coal Ltd. and India’s Tata Power. Tigers Realm in June this year shipped its first 40,000 tons of coking coal to China from a coal field in Chukotka in 2016. Output for this year is set at 400,000 tons.

Tata Power is developing the $560 million Krutogorovsky coal depositin Kamchatka, which at full capacity will produce up to 10 million tons of coal a year.

The uptick in investments is largely due to a new economic policy for the Far East.

Minister for the Development of the Russian Far East Alexander Galushka. Photo: Minister’s Press Office.
“We’ve attracted $37 billion of private investment to the region, but this is not a one-off action. We plan to keep going and by the end of 2017 accumulate a total of $67 billion in private investments,” said development minister Galushka.