06.12.2024 \\ The Arkhangelsk Region will soon have an operational plant producing crystalline iodine—the development of the Severodvinsk deposit, which took over 20 years, is finally reaching its logical conclusion. In the last quarter of 2024, Russian Iodine will be carrying out commissioning work on a pilot well cluster, and the plant will soon produce its first batch of iodine.

In the initial stage, the pilot production will yield 4 tons of iodine annually. Subsequently, as part of the pilot industrial development of the deposit, production will increase to 60 tons. The company is a resident of the Arctic zone of the Russian Federation (AZRF). Under an agreement with the Far East Development Corporation (FEDC), the investment volume amounts to RUB 42.6 mn. To date, the plant has created 21 jobs. Over the next five years, Russian Iodine plans to reach its design capacity of 120 tons of iodine. Concurrently, the number of jobs will increase to 70.

The first attempts to explore the Severodvinsk deposit began back in the 2000s. According to Alexey Izhmiakov, Director of Russian Iodine, the number of iodine deposits in Russia can be counted on one hand, and each of them is unique. Russian Iodine is the only company in our country that has developed this type of deposit, making it the sole domestic producer of iodine.

However, the project's advantages also create challenges—extracting Severodvinsk iodine requires rather rare technologies, which were not available in Russia until recently. It took the company nearly 5 years to conduct all necessary assessments, develop and prepare technical documentation for both the water intake and the production complex itself. According to the company head, the unique deposit has become a real challenge, requiring the creation of fundamentally new competencies for all participants in the field development process.

The result is not only a modern but also an environmentally friendly production. The technology works as follows: first, iodine-containing borehole water is extracted from wells and delivered to the production line, where ion exchange technology is implemented. The company obtains crystalline iodine at the output, and the clean water is pumped back into the underlying earth formation.

In the long term, further exploration of the deposit may allow the production of about 500–600 tons of iodine annually. In his view, the current volume of the Russian market is 1,200 to 1,500 tons per year, with an estimated annual growth of about 10%. The development of crystalline iodine production in the Arkhangelsk Region could significantly reduce Russia's dependence on imports of this substance. Currently, a pilot plant has been launched at the Severodvinsk deposit to test all processes. As much of the technical process is new, careful and incremental development is required.

Anastasia Zhuk, Deputy Director of the Department of Investment Project Implementation Support of the FEDC: 'Residents of the AZRF pay taxes at reduced rates and gain access to administrative preferences. These include simplified obtaining of land plots for project implementation and assistance with business staffing. Resource projects are the backbone of production in the Arctic, and FEDC fully supports such businesses.'

The tax preferences for AZRF residents have become a significant boost for the project's implementation. In the Arkhangelsk Region, there is a 50% tax deduction for companies extracting minerals. Residents have access to a 75% insurance premium reimbursement for 10 years, a 5% income tax for the first 5 years of residency and 10% for the next 5 years, a 0.1% property tax for the first 5 years, an 80% to 100% land tax relief depending on the municipality, as well as a 1% income tax and 5% income-expense tax under the simplified tax system.

Under agreements with the FEDC, 869 residents are implementing projects in the AZRF regime, and businesses are investing RUB 969.5 bn. New companies are creating 27,800 jobs. Businesses have already invested RUB 147.01 bn in the Russian Arctic economy, created 11,200 jobs, and 216 investment projects across various sectors have been put into operation. Comfortable conditions have been created for investors to realise their business ideas in the world's largest preferential territory. Investment in the project starts from RUB 1 mn, with a zero-profit tax rate when transferred to the federal budget (for 10 years) and reduced profit tax rates when transferred to the budget of a constituent entity of the Russian Federation for 10 years (rates vary depending on regional legislation). There are reduced land and property tax rates, 10 years of subsidising 75% of insurance premiums for newly created jobs, and a tax deduction for mineral extraction tax up to 50% of the current rate for solid minerals extracted at new deposits.

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