Russia to build $8 bn metals hub in Far East
Russia is set to build a massive mining and metals hub worth more than 667 billion rubles ($8 bn) in its Far East, the government has announced.
The project will boost domestic steelmaking and target major Asian markets, including China and India.
Russian Prime Minister Mikhail Mishustin has signed a decree expanding the Khabarovsk Territory of Advanced Development (TOR) to make way for the industrial complex, the government announced on Sunday. The project will be built around the Milkanskoye iron ore deposit in the remote Tuguro-Chumikansky district.
The expansion will give the company behind the project, LLC Milkan, access to tax breaks, streamlined administrative procedures and a free customs zone, reducing the costs of developing the massive industrial complex. The special economic regime is designed to attract private investment and accelerate industrial development in Russia’s eastern regions.
It is expected to process up to 54 million tons of iron ore annually and produce 16 million tons of high-grade pellets used in steelmaking. The complex is scheduled to reach full capacity by 2032.
The development will include around 180 km of new railway, automated conveyor systems and a seaport terminal to ship finished products to domestic and overseas markets.
China, India, and Indonesia are among the planned export destinations. The project is also included in a portfolio of joint investment initiatives overseen by the Russian-Chinese Intergovernmental Commission on Investment Cooperation.
The hub is expected to create around 3,200 permanent jobs, with more than 5,000 workers needed during construction. Khabarovsk Governor Dmitry Demeshin said LLC Milkan will finance the necessary infrastructure without government funding.
The development is part of Russia’s push to turn its resource-rich Far East into a major industrial and export center, with a focus on producing higher-value goods rather than exporting unprocessed raw materials.
The Khabarovsk TOR already has around 130 resident companies with more than 474 billion rubles in pledged investment. Of that amount, 414 billion rubles has been invested, while businesses operating under the scheme have created more than 16,600 jobs, according to the regional authorities.
Moscow has been expanding special economic development zones across the Far East to draw private capital, build transport infrastructure and strengthen trade with Asian economies. The region’s proximity to China and access to Pacific shipping routes have made it a key focus of Russia’s efforts to deepen economic ties with Asia.
