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Journal section "Sustainable development of territories, branches, and production complexes"

Public Benefi ts and Costs in the Development of Mineral Resources of Northern Territories (Komi Republic)

Kuznetsov D.S.

6 (92), 2017

Kuznetsov D.S. Public Benefi ts and Costs in the Development of Mineral Resources of Northern Territories (Komi Republic). Problems of Territory's Development, 2017, no. 6 (92), pp. 68-82

Abstract   |   Authors   |   References
The Komi Republic possesses a significant amount of mineral resources. Deposits of oil, gas, coal, and bauxite are being developed. There are also deposits of titanium and manganese ores, gold, barites, high-quality quartz and other minerals. Oil and gas and mining complexes have for many years played a vital role in the socio-economic development of the region. The purpose for the research is to assess public benefits and costs of mineral resource development. The novelty of the research lies in the fact that comprehensive analysis of benefits and costs, expressed in various socio-economic indicators and their performance was conducted for the first time. The author provides the characteristics of mineral resource base of the Republic, data on volumes of mineral resource extraction, financing of the exploration, the condition of the mining companies. It is demonstrated that mineral extraction is a significant part of the gross regional product, which provides about half of tax payments to Federal and regional budgets. The wages of workers in the mining industry are much higher than the average for the Republic. Along with this, the author presents data which indicate some negative trends and costs. Migration outflow, especially from coal-producing cities continues. There is a number of issues associated with shift deposit development, employment of local people, integrated and rational natural resource development, and environmental protection. It is concluded that it is important to further develop the mineral resource base, involve new deposits and processing companies in the industrial circulation. Attention is drawn to the need to promote intraregional shift population migration, development of non-oil sectors of the economy in order to prevent social and economic decline as mineral reserves deplete. The research results can be used by public authorities in the development and implementation of the strategy of the region’s industrial development. In the future, it is necessary to improve the theoretical and methodological approaches and conduct more comprehensive assessment of the socio-economic efficiency of mineral resource development in Northern and Arctic territories


komi republic, mineral resources, costs, territorial industrial relations, public benefits

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