The Russian government has officially transferred a significant 89.5% stake in the Solikamsk Magnesium Plant (SMZ) to Rosatom, the state nuclear energy corporation. This strategic move, completed on January 22, is part of a broader effort to consolidate Russia’s position in the rare earth metals and magnesium production sectors.
Located in the Perm Region, SMZ is a key player in the production of rare earth metals (REM) concentrate, tantalum, niobium, and titanium sponge. This transfer follows a December 2023 directive from the Russian government, which aimed to bolster Rosatom’s mining division by integrating state-owned shares of SMZ as a property contribution.
Ruslan Dimukhamedov, the general director of SMZ, highlighted that this consolidation under Rosatom’s mining division is set to streamline the entire chain from mining to REM production. A primary focus will be the development of separation production at SMZ, aiming to expand production capacity and reinforce the country’s raw material independence.
This transfer comes in the wake of legal actions initiated by the Prosecutor General’s Office on behalf of Rosimushchestvo, targeting the seizure of the 89.5% SMZ shares previously held by four major individual shareholders. The legal process concluded with the shares becoming federal property, further solidified by a presidential decree in January 2023, which mandated the transfer to Rosatom.
With an authorized capital comprising 398,272 thousand ordinary shares, SMZ stands as a cornerstone in Russia’s strategic metals industry. This move not only secures Rosatom’s position in the sector but also signals a significant step towards enhancing Russia’s autonomy in critical raw materials, potentially influencing global rare metals markets. 
