Russia: Mining, Minerals and Fuel Resources

By Ankit SinghReviewed by Laura ThomsonUpdated on Jul 24 2025

Russia covers 17 million square kilometers and is home to significant mineral and fuel reserves. This abundance has made the country an important player in the global mining industry, influencing its economic growth and geopolitical standing over time. From historical mining operations to contemporary advancements in technology, Russia's underground resources remain central to its economy while facing changing environmental regulations and international challenges.¹

Image Credit: LETOPISEC/Shutterstock.com 

Mining History in Russia

Mining in Russia has its roots in the 15^th and 16^th centuries, when small-scale operations extracted salt, iron, and copper for local use. The industry saw significant changes under Peter the Great in the early 18th century. His policies aimed to develop mining and metallurgy to support military growth and industrial advancements. The discovery of gold in the Urals and Siberia in the 19^th century led to increased settlement in these regions.²

During the late Soviet era, from the 1960s to the 1980s, substantial state investment focused on developing Siberia’s fossil fuel resources. Following the collapse of the Soviet Union, privatization in the 1990s led to the formation of modern mining conglomerates, while the state retained control over energy and critical minerals through regulations and ownership in key companies.^2,3

Current Economic Landscape

Today, Russia's mining sector is essential to its economy, contributing about 10 to 15 percent of GDP and providing nearly 2.8 million jobs. This sector also supports millions more in related industries. Russia is the largest natural gas producer, the third-largest exporter of primary aluminum and steel, and ranks eighth in crude oil reserves.^4,5

Despite the Western sanctions that began in 2022, resource exports, especially fuels and precious metals, continue to generate important foreign currency earnings. Mining and quarrying significantly contribute to industrial output, highlighting the sector's stability and dominance. However, excessive reliance on extractive industries creates vulnerability to fluctuations in commodity prices and geopolitical disruptions.⁶

Mineral Resources: Subsurface Wealth

Russia's vast geological resources can be categorized into three main areas.

• Fossil Fuels: Home to the world's largest natural gas reserves, Russia ranks among the top three crude oil producers alongside Saudi Arabia and the United States. In 2021, its crude and condensate output reached 10.5 million barrels per day (bpd), representing 14% of global supply. That year, oil and natural gas revenues constituted 45% of Russia’s federal budget.⁷ Most production facilities are located in western and eastern Siberia, with crude exports totaling approximately 4.7 million bpd, predominantly to China and European nations. The main export blend is Urals, while Asia receives substantial volumes of ESPO blend crude. Russia also has a refining capacity of 6.9 million bpd, producing various oil products, including gasoline and diesel.⁷
• Metals: As of 2023, Russia holds the second-largest gold mine reserves globally, exceeding 11,000 metric tons, second only to Australia. It ranks third in gold production with over 300 metric tons, following China and Australia. Russia is a key contributor to the platinum group metals market and plays a significant role in global titanium (22%) and uranium (10%) supplies, being the second-largest platinum producer. The Kursk Magnetic Anomaly houses a significant portion of the world’s iron ore, and Norilsk hosts vast nickel-copper-palladium deposits critical for electronics and batteries.^8,9,10
• Industrial Minerals: Russia is the leading global diamond producer, contributing about 20 percent of worldwide yields with annual outputs around 18 million carats. Of these, 25 to 30 percent are gem-quality diamonds, primarily sourced by the state-owned Alrosa. The Kola Peninsula's valuable apatite deposits play a vital role in phosphate production, enhancing agricultural fertility and supporting food security.^11,12,13

Key Players in Russia’s Mining Industry

Russia’s resource sector landscape is dominated by state-supported corporations such as Gazprom and Rosneft, which oversee the extraction of oil and gas.

Nornickel leads the metals and mining industry. It is the largest producer of palladium and high-grade nickel, producing platinum, copper, cobalt, and other metals.

TVEL, a private company owned by the Federal Atomic Energy Agency, manages all uranium mining in Russia and contributes 17% of the world's uranium production.¹⁴

Alrosa produces 90% of Russia's diamonds and holds a 30% share of the global diamond market in terms of total production value.

Meanwhile, Russian Platinum aims to capitalize on substantial platinum group metals (PGM) deposits in Siberia, targeting an annual production of 70 metric tons by 2029.¹⁵

Mining Technologies in Russia

As Russia's mining industry grapples with labor shortages and environmental pressures, new technologies are key in boosting efficiency and sustainability, particularly in remote regions. Around 60% of mining companies are planning to adopt artificial intelligence (AI) to enhance mineral processing and support predictive maintenance, which can significantly cut down on equipment downtime.¹⁶

Automation is also making a notable impact. For example, autonomous haul trucks deployed in Norilsk’s operations are reducing the need for workers to operate in harsh weather and hazardous environments. In parallel, satellite monitoring systems are being used to track environmental changes and ensure real-time compliance across large territories, supporting more sustainable mining practices.¹⁷

Download your PDF copy now!

Environmental and Social Implications of Russian Mining

The environmental impact of mining is a significant concern. Soviet-era operations in the Kola Peninsula and Norilsk have led to severe pollution, including acid rain from smelting, which has harmed local forests.

While modern regulations are designed to improve tailings management and emissions control, their enforcement is often inconsistent. The ongoing asbestos mining operation highlights ongoing challenges, as Russia extracts 700,000 tons each year despite the known health risks of fiber inhalation. The industry employs between 8,000 and 12,000 workers in high-risk jobs, primarily located in the Urals.^18,19

Socially, mining can contribute to the development of remote areas, but it also creates dependency on single employers. Towns like Mirny heavily rely on mining companies for their economic stability. Although these companies invest in local infrastructure due to government pressure, there is still a significant need for workforce diversification and better engagement with Indigenous communities.²⁰

Challenges and Opportunities in Russia’s Mining Industry

Russia’s mining sector encounters several interconnected challenges. Western technology restrictions hamper the development of complex deposits such as Arctic oil and deep gold seams, though they accelerate domestic innovation in processing.

Infrastructure limitations hinder access to many untapped resources located in remote eastern regions, which often lack adequate roads, power grids, and housing for workers. Global markets are also increasingly focused on cleaner supply chains, putting pressure on operations that have high emissions.²¹

Despite these challenges, there are opportunities for growth. The demand for critical minerals, such as lithium and cobalt, is rising, with Siberian deposits attracting investment. Moreover, melting sea ice allows for greater resource access in the Arctic, though this also raises ecological concerns.²¹

The Future Of Russian Mining

Russia's mining future will depend on its ability to adapt to geopolitical isolation while modernizing its operations.

Short-term goals include shifting commodity exports from Europe to Asia through new rail and port connections and expanding nuclear power to support energy-intensive mineral processing.

By 2030, integrating automation and renewable energy may help reduce carbon emissions by 30 percent, addressing environmental concerns while maintaining production levels.

The country’s resources will remain vital to its economy, but sustainable practices will be essential to align technological growth with environmental and social responsibilities.

References and Further Reading

1. Natural Resources of Russia: Where Natural Resources are Located in Russia. (2024). Earth Site Education. https://www.earth-site.co.uk/Education/natural-resources-of-russia-where-natural-resources-are-located-in-russia/
2. Graber, A. (2024). Mining and Metallurgy in Early Imperial Russia. In: Aronova, E., Sepkoski, D., Tamborini, M. (eds) Handbook of the Historiography of the Earth and Environmental Sciences. Historiographies of Science. Springer, Cham. DOI:10.1007/978-3-030-92679-3_29-1. https://link.springer.com/rwe/10.1007/978-3-030-92679-3_29-1
3. Seton-Watson, H. et al. (2025). Russia - Energy, Manufacturing, Agriculture. Encyclopedia Britannica. https://www.britannica.com/place/Russia/Economy
4. GDP share by industry Russia 2023. Statista. (2024). Statista. https://www.statista.com/statistics/1314532/gdp-share-by-industry-russia/
5. Mineral extraction & energy employees Russia 2023. (2024). Statista. https://www.statista.com/statistics/1265570/fuel-and-energy-industry-employees-russia/
6. Fenton, N. (2025). Down But Not Out: The Russian Economy Under Western Sanctions. CSIS. https://www.csis.org/analysis/down-not-out-russian-economy-under-western-sanctions
7. Energy Fact Sheet: Why does Russian oil and gas matter? (2022). International Energy Agency. https://www.iea.org/articles/energy-fact-sheet-why-does-russian-oil-and-gas-matter
8. Topic: Gold mining in Russia. (2024). Statista. https://www.statista.com/topics/7086/gold-mining-in-russia/#topicOverview
9. Platinum: Impact assessment for supply security. (2023). RMIS - Raw Materials Information System (European Comission). https://rmis.jrc.ec.europa.eu/uploads/jrc133245_briefing_platinum_final.pdf
10. Safirova, E. (2024). The Mineral Industry of Russia. U.S. Geological Survey Publications Warehouse. https://pubs.usgs.gov/myb/vol3/2020-21/myb3-2020-21-russia.pdf
11. RUSSIAN DIAMONDS. Facts and Details. https://factsanddetails.com/russia/Economics_Business_Agriculture/sub9_7e/entry-5177.html
12. Diamond production in Russia and major projects. (2024). Mining Technology. https://www.mining-technology.com/data-insights/diamond-in-russia/
13. El Bamiki, R. et al. (2021). Phosphate Rocks: A Review of Sedimentary and Igneous Occurrences in Morocco. Minerals, 11(10), 1137. DOI:10.3390/min11101137. https://www.mdpi.com/2075-163X/11/10/1137
14. A Guide to Russia's Resources. (2025). GeoHistory. https://geohistory.today/resource-extraction-export-russia/
15. Russian Platinum to Grow Production. E & MJ. https://www.e-mj.com/features/russian-platinum-to-grow-production/
16. Mining Production 2025: Innovations & Future Outlook. (2025). Farmonaut®. https://farmonaut.com/mining/mining-production-2025-innovations-future-outlook
17. Nornickel bolsters modernisation and automation efforts with new equipment, solutions. (2020). International Mining. https://im-mining.com/2020/11/26/nornickel-bolsters-modernisation-automation-efforts-new-equipment-solutions/
18. How Norilsk, in the Russian Arctic, became one of the most polluted places on Earth. (2021). NBC News. https://www.nbcnews.com/news/world/norilsk-russian-arctic-became-one-polluted-places-earth-rcna6481
19. Asbestos Mining: 2025 Risks & Outlook In Russia, Kazakhstan. (2025). Farmonaut®. https://farmonaut.com/mining/asbestos-mining-2025-risks-outlook-in-russia-kazakhstan
20. Boyarko, G. et al. (2017). Mining monotowns in Russia. ResearchGate. DOI:10.17580/gzh.2017.01.01. https://www.researchgate.net/publication/313691857_Mining_monotowns_in_Russia
21. Vidal, F. (2023). Russia’s Mining Strategy Geopolitical Ambitions and Industrial Challenges. Ifri | L'intelligence des relations internationales. https://www.ifri.org/sites/default/files/migrated_files/documents/atoms/files/vidal_russiaminingstrategy_2023.pdf

Disclaimer: The views expressed here are those of the author expressed in their private capacity and do not necessarily represent the views of AZoM.com Limited T/A AZoNetwork the owner and operator of this website. This disclaimer forms part of the Terms and conditions of use of this website.