L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...

will allow the project to overcome the highest-risk investment
phase.
Table 2.2.4. Investment in capital funds of the mining sector
in Russia 1995–2008
(in current prices, ‘billion Rubles; 1995 – trillion “old Rubles”)
Mining sector,
Total
1995 2000 2001 2002 2003 2004 2005 2006 2007 2008
38,0 211,4 285,2 297,9 348,7 442,0 501,9 690,7 929,8 1234,0
Including:
Fuel mineral
extraction sector
Non-fuel mineral
extraction sector
34,8 195,0 262,4 273,8 315,6 401,6 447,0 627,2 838,4 1118,7
3,2 16,4 22,8 24,1 33,1 40,4 54,9 63,5 91,4 115,4
Compiled on the basis of: . ., 2010.
The renewal of the minerals resource base and its development
on the basis of mineral resource complexes is of major importance
for Russia. The economy of a great many regions and the country as
whole substantially depends on the development of raw material
industries. In 2007, commercial products of mineral processing industries
accounted, in terms of value, for 37.8% in the common
structure of the raw material industries. At the same time, the large
mineral resource base prepared during the Soviet period has decreased
considerably.
Those investment projects that initially provided for a minimum
margin of safety will be terminated. The excess money in the market
during its growth period promoted unsound investments and gave rise
to marginal projects. Such projects are economically viable when the
market is advancing but their margin of safety is very low. In the event
of a slight slowdown in the market, they will face a default. In fact their
termination is not bad as only those projects are to survive that are
based not on market expectations but on the need to meet the actual
demand of the economy in resources and production capacities. 37
95