Project and Initiative Overview

The current mineral extraction tax system for tin creates significant risks. Due to the fixed coefficient, the effective tax burden amounts to 28% of the value of the extracted metal regardless of whether the price is high or low. For a low-margin industry, this is a critical factor.

The Strategic Metals Alliance STANNUM proposes replacing the rigid formula with an adaptive mechanism. Instead of a fixed coefficient, a special tin coefficient would be introduced, changing automatically depending on the market price of tin. This would protect production during periods of falling prices and ensure fair collection of excess income when market conditions are favorable.

What the adoption of the legislative initiative provides
For business:
It eliminates situations where tax is paid from working capital during loss-making operations. The investment attractiveness of projects increases, especially in the Far Eastern Federal District, where deposits are technically complex to develop.
For the state:
Instead of a procyclical model that intensifies crises, an anticyclical system is created. The tax burden smooths market fluctuations, helping preserve existing enterprises and infrastructure. In the long term, it increases the tax base through new investments. At high prices, the budget receives increased revenues.
Main principle:
The reform is not aimed at simply reducing taxes. It changes the logic of taxation: natural resource rent is collected while investment resources are preserved. This approach has been tested internationally and can strengthen Russia’s strategically important tin industry.

Improving land conversion procedures for subsoil use: how to break the closed loop of administrative procedures.
The current system for obtaining land for subsoil use creates artificial barriers. Due to the strict sequence of actions — license, land, project, land category conversion — a closed loop arises: the project cannot be approved without land rights, while land rights cannot be obtained without an approved project.
The average documentation period reaches 12–18 months, freezing investments and increasing business costs.
The legislative initiative proposes replacing the sequential model with a parallel procedure mechanism. Instead of waiting for one stage to be completed before another can begin, the principle of preliminary approval is introduced. This allows the winner of a subsoil-use auction to initiate land conversion and prepare project documentation even before the state registration of the license.

How the new mechanism works
The main acceleration tool is a decision on preliminary approval for the provision of a land plot. This decision, adopted immediately after the auction winner is determined, becomes a legal basis for starting land category conversion in parallel with license registration.
The initiative also introduces temporary reservation of agricultural land and a simplified procedure for changing the permitted use within industrial land categories, eliminating duplicate bureaucratic steps.

What the adoption of the legislative initiative provides
For business:
Downtime and financial losses caused by waiting for land rights registration are eliminated. Administrative costs are reduced, and the average project launch period is shortened by approximately six months, which is critical for improving the investment attractiveness of geological exploration and mining.

For the state:
Accelerated commissioning of deposits will support faster growth of the tax base. Environmental safeguards are not weakened but strengthened: land conversion remains impossible without an approved reclamation project.

Main principle:
The legislative initiative synchronizes the requirements of land, mining and urban planning legislation, breaking the artificial bureaucratic cycle. This makes it possible to efficiently involve the resource base in economic circulation without negative environmental consequences.