State Support for Development of Rare Earth Industry and Problems of Economy Modernization

Abstract

The paper reviews problems of improving the economic mechanism of subsoil use. This may help rationalize the use of natural resource potential and expand opportunities for extraction of rare and rare earth metals. Russia receives more than ninety percent of rare earth raw materials from abroad possessing its own significant reserves of rare earth metals. At the same time, the development of high-tech industries is impossible without a wide range of rare earth metals. The paper reveals the situation of Russian rare earth industry and offers recommendations to expand the raw material base by using technogenic deposits. The expediency of using concession schemes for development of small, including man-made mineral deposits has been substantiated. The paper proves the necessity of extending the practice of levying additional income tax (APT) to small complex deposits of solid minerals and also demonstrates the influence of new technologies.