Rosneft acquires Russia’s largest rare earth deposit

Russia’s state-run oil giant Rosneft has acquired the giant Tomtor rare-earth deposit in Siberia, filings in the country’s national commercial registry show.

Tomtor, considered Russia’s largest deposit of its kind, is central to Moscow’s ambitions to boost domestic production of strategic minerals used in defence and high-tech industries. The project could also become a potential area of cooperation with the United States if a peace agreement is reached in the ongoing conflict with Ukraine.

Rosneft, led by Igor Sechin, a longtime ally of President Vladimir Putin, gained full control of the project’s operator, Vostok Engineering, on May 20, according to Reuters.

The deposit contains an estimated 154 million tonnes of ore, according to Russia’s Ministry for the Development of the Far East and Arctic. It holds rare monazite and pyrochlore, as well as valuable elements like niobium and scandium.

Putin has previously criticized delays in Tomtor’s development. In November, he ordered the project be advanced either by its current owners, with outside investors, or through state support. Western sanctions imposed after Russia’s 2022 invasion of Ukraine have stalled progress, limiting access to key technologies needed to develop the site.

Fifth-largest reserves

Before the war, Russia planned to invest $1.5 billion to become the world’s second-largest rare earth producer after China by 2030. The country holds the fifth-largest reserves globally, estimated at 3.8 million tonnes by the U.S. Geological Survey (USGS), behind China, Brazil, India and Australia. Its goal is to capture up to 12% of the global market within five years.

Rosneft’s move mirrors a broader trend of oil majors diversifying into critical minerals. ExxonMobil was one of the first companies to do so, announcing plans in 2023 to extract lithium from brine in the southern U.S. using direct lithium extraction technology. Chevron and Occidental have also shown interest in lithium ventures. 

Governments have also followed suit. Saudi Arabia has secured a string of mining deals with companies including India’s Vedanta and China’s Zijin Group, and in January launched a joint initiative between state oil firm Aramco and mining company Ma’aden to expand lithium production.