National University of Science and Technology “MISiS”, Moscow, Russia:

A. S. Vernigora, Post-Graduate Student (Chair of Applied Economics), e-mail: vernigora.a@gmail.com

This article describes one of possible ways of crisis overcoming for Russian rare-earth industry, which is concluded in creation of large global company — a vertically integrated company. Rare-earth vertically integrated company allow Russia to regain ground in rare-earth elements market, which were lost after the collapse of the USSR. The reason for creation of vertically integrated company was proved. There was carried out the monitoring of basic rare-earth assets for inclusion of vertically integrated companies in circuit both in Russia and abroad (for transfer of advanced western technologies to Russia in the deposit of rare-earth elements, and complete provision of needs of Russian industries in high-deficit metals). The basic steps of creation of vertically integrated company are given together with a list of Russian raw material sources of rare-earth elements for mastering. The modeling method was used for calculation of basic financial and industrial indices of vertically integrated company for 2014–2021. Implementation of these steps will create a competitive vertically integrated company with full cycle of production of rare-earth elements (M2M “Mine-to-magnets” — from mining to magnets), which will be integrated into the global market through the acquisition of foreign assets and formation of alliances with global industry leaders. This strategy will reduce the barriers, which arise in front of “new player” in the time of its entry to foreign markets. The strategy will also get an access to modern technology and processing of rareearth elements' competency in management of operating economies of rare-earth producers, which will be later localized in Russia and used for processing of rare-earth elements, extracted on Russian deposits. Foreign companies are also interested in cooperation, because they open new markets and reduce their dependence from feedstock purchases from China. As a result of all stages, these companies will be included in the top five of the world rare-earth companies, controlling 15% of the world market. These companies will completely meet the rare-earth products of domestic industry, and provide it with innovation and technologically breakthrough in the XXI century and in the future, promoting economic independence and national security.

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