AUTHOR: YANA TSELIKOVA, COMMERCIAL ASSISTANT, U.S. &
FOREIGN COMMERCIAL SERVICE, U.S. CONSULATE GENERAL, VLADIVOSTOK
APPROVING OFFICER: RICHARD STEFFENS, PRINCIPAL COMMERCIAL OFFICER,
U.S. & FOREIGN COMMERCIAL SERVICE, U.S. CONSULATE GENERAL,
VLADIVOSTOK
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND THE U.S. DEPARTMENT OF STATE, 2000. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
Contact information
For further information about this and other business opportunities in the Russian Far East, please contact:
The U.S. Commercial Service
U.S. Consulate Vladivostok
PCO Richard Steffens
4232-300093; fax 4232-300092;
Email: csvlad@online.ru
Summary
1. Dalnegorsk is a remote, rarely visited city near the eastern coast of Primorsky Krai in the Russian Far East. It is also home to surprising mineral resources --- half of Russia’s lead, plus zinc, boric acid, and others. With the 1998 devaluation of the ruble, Dalnegorsk mines have begun to export and to sell more product within Russia. This has created opportunities for U.S. businesses to sell and lease mining equipment.
List of meetings
2. On March 9 and 10, 2000 PCO Steffens, CA Tselikova, and
Ecolinks Primorsky representative Vladimir Kulagin a held a Trade
and Investment Day in Dalnegorsk. FCS staff met with:
- Viktor Satrchenko, Head of Administration
- Aleksandr Kolnookiy, Deputy Head of Administration
- Anatoliy Ryabtsev, Director General, JSC “Bor”
- Vladimir Mashkov, Director General, JSC “Dalpolymetall”
- Gennadiy Inshin, Director General, J-V “Riolit”
- Anatoliy Khimichuk, Director General, “Kamenskiy”
fish processing plant
- Vladimir Greb, Director General, “Dalnegorskiy” beer
factory
- Pavel Pozdnyakov, General Manager, “Dalpoymetall’s”
ore-dressing factory;
FCS staff visited the production facilities of “Bor”, ore-dressing facility “Dalpolymetall” , and Russian-Italian joint venture “Riolit”.
Dalnegorsk – A City in the Hills
3. Dalnegorsk is a squalid, little city nestled in the valley of the Sikhote-Alin mountains on the Rudnaya River in eastern Primorsky Krai. It is the administrative center and only major city of Dalnegorskiy municipal district (5,351 square kilometers; about 60,000 people.) Because of its mines, Dalnegorsk is one of more prosperous, better-governed cities in the Russian Far East.
Limited Transport
4. A 517-km road through sparsely populated mountains is Dalnegorsk’s main link to civilization. The nearest railway station, Novo-Chuguyevka, is over 180 km away. Regular flights to the city ceased in the mid-90s. The nearest seaport, Rudnaya Pristan, is 35 km away. The port has no moorings, and no loading docks. Ships anchor in the bay, and cargo is taken on and off in small boats from the beach. Cargo from Dalnegorsk can also handled through distant Olga seaport, accessible through poor mountain roads.
Rich Resources
5. Dalnegorsk territory is rich in minerals, timber, and fish. This Primorskiy mining center has unique deposits of datolites with high boron contents, as well as polymetallic deposits containing lead, zinc, and bismuth.
Best prospects
6. Best prospects and business opportunities include:
- mining equipment
- earth-moving equipment
- waste-utilization and environmental technologies
- forestry equipment (loaders, manipulators)
- wood processing equipment
- food processing and packaging equipment
Leading companies
7. Two big mining and chemical enterprises – JSC “Bor” and “Dalpolymetall, dominate the local economy and employ most of the population. Several minor companies are active in forestry, fishery, and food processing.
8. JSC “Bor” is Russia’s leading producer of boric acid and other boric compounds. Most output is exported to more than 20 countries. Moscow-based “Elekromash Corporation” is “Bor’s” co- founder and principal trading partner. “Elektromash” exports “Bor’s” products, and funds production cost and equipment. “Bor” has a representative office in Copenhagen, Denmark. “Bor’s” products dominate the Japanese market (through “Marubeni”) and Chinese market. With the 1998 ruble crash, Bor’s products became more internationally competitive, and Bor increased production. Now, Bor seeks to lease earth moving and mining equipment.
9. JSC “Dalpolymetall” consists of 5 mines, an ore-dressing plant, lead-producing plant, and several other branches. Its main products are refined and concentrated lead, concentrated zinc, gold-silver alloy and metallic bismuth. Most production is exported. The Swiss firm, “Glinkor”, sells Dalpolymetall products on the international market. Annual revenue is USD 12-14 million. There are opportunities to supply mining equipment to the company.
10. “Tayozhnoye” logging and timber export company dominates the local timber market. Annual capacity is 110,000 cubic meters of timber. Over 70 per cent are exported to Japan and Korea. There are opportunities in supply of logging and wood working equipment.
11. Leading food processing enterprises include “Kamenskiy” fish- processing plant, beer factory, and bakery. Packaging materials and equipment are among business opportunities in this sector.
Third Country Activities
12. The third country activities in Dalnegorsk are limited. There used to be Swiss investments (”Glinkor”) into “Bor”. In 1991, a Russian-Italian joint venture “Riolit” was founded to process decorative minerals.
Local Government
13. The local government is tightly connected with the Governor of Primorskiy Krai, who has grew up and started his career in Dalnegorsk. Administration leaders seemed to be optimistic, bright, and energetic, and open to international cooperation and trade. The 42-year-old local mayor, Viktor Starchenko, bragged of being thrown out of the Communist youth organization for disobedience. As in most small RFE cities, the leading industries and local government work together closely, which can be either an asset or liability to foreign businesses.
Local Accommodation
14. “Bor”, the sole hotel in Dalnegorsk, has large (very cold) rooms, shabby furniture, and brownish (yet hot) water. The electricity worked, at least during the visit of the CS delegation.
15. The hotel restaurant serves very good, inexpensive Russian food. The city has one or two formal taxis and a large number of informal ones. Medical services appear to be limited. U.S. business visitors are advised not to get sick here, as it would be a long, uncomfortable ride out.
Contacts
Dalnegorsk Municipal and District Administration
Viktor Mikhailovich Starchenko, Head of the Administration
125, Prospekt 50-let Oktyabrya
Tel.: (7-42376) 9-24-25
Fax: (7-42376) 9-24-30
JSC “Bor”
Anatoliy Evgenyeivch Ryabtsev, Director General
116, Prospekt 50-let Oktyabrya
Tel.: (7-42376) 9-13-61
Fax: (7-42376) 9-11-22
JSC “Dalpolymetall”
Vladimir Ivanovich Mashkov, Director General
111, Prospekt 50-let Oktyabrya
Tel.: (7-42376) 9-13-90
Fax: (7-42376) 9-15-16
J-V “Riolit”
Gennadiy Aleksandrovich Inshin, Director General
89, Prospekt 50-let Oktyabrya
Tel.: (7-42376) 9-53-65, 9-28-07
Fax: (7-42376) 9-27-04
“Kamenskiy” fish processing plant
Anatoliy Petrovich Khimichuk, Director General
Tel./Fax: (7-42376) 9-93-21
“Dalnegorskiy Pivzavod” brewery
Vladimir Viktorovich Greb, Director General
Tel./Fax: (7-42376) 9-22-98
Hotel “Bor”
123, Prospekt 50-let Oktyabrya
Tel./Fax: (7-42376) 9-31-32, 9-10-64