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As the Mining World Russia exhibition wraps up, Australian companies are looking to head home and count their successes at the show, and in the country. Speaking to a number of Australian companies which participated in the Austmine and Austrade developed trade mission and the exhibition as well, they said it was a positive experience and has helped them get a foot in the door of one of the largest mining markets in the world.
The trade mission was carried out as a political storm grew in the background, however this didn’t work to deter miners, who were focusing on the longer term goals of taking Australian experience and technology into new and willing markets.
But why Russia? According to Palaris’ Joe Carr “Russian miners are currently seeing a requirement for technical expertise that they just don’t have here,” which includes high end products and experience that many Australian mining and METS companies have.
Bradken added that “there is a real desire for better technology and equipment in the country,” with Gekko’s Nigel Grigg explaining that previously Russia operated with smaller equipment, but lots of it, so now they are looking to larger, single pieces of machinery or technology”.
This point was previously stated by Austmine’s head Robert Trzebski.
“Russia is a huge country with huge potential,” Trzebski said.
“Russia is still much cheaper than Australia, although there are cost pressures, but it does have a tremendous wealth of resources.”
One of the major selling points for the nation is that despite having nearly a fifth of the world’s mineral deposits, it is still grossly underexplored.
Some of the major challenges like in the fact that “it is still highly disorganised and state driven”, yet the “opportunities still outweigh the risks, as it is a controlled risk,” he explained.
And this controlled risk is Australian companies either setting up with an agent, or going in and doing the groundwork themselves.
Grigg explained Gekko’s own situation, which saw them go from having years of presence in Russia through an agent, and the next day have none whatsoever – due to M&A.
A major part of the mission, apart from getting Aussie companies in front of major Russian miners, was to develop and sign off an MoU between Austmine and its Russian equivalent, the Union of Mining Industry.
Austmine CEO Robert Trzebski told Australian Mining “the signing of this agreement is very symbolic, and regardless of the current political situation, the show must go on, and this agreement provides a pathway for Australian companies to do that”.
“It also shows that Russian companies recognise what Australians are doing and want to work with them as they can see the value of our products and services.
“Working in Russia and the CIS is a long term opportunity, and this agreement gives us the vehicle to work on that and really expand Australia’s reach.”
Speaking at the launch of the MoU at Mining World Russia, Australia’s ambassador to Russia Paul Myler commented on the effectiveness of agreements such as these, stating that “when miners talk to miners, good business gets done,” adding that the new agreement is “an opportunity to expand our bilateral trade” with Russia.
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