Estonian rare earth metals producer Silmet plans to end its reliance on Russian raw materials by the end of the year, a move that will involve reduced production and temporary shutdowns at its existing facility.
Silmet's parent company, NEO Materials Group, has reportedly circulated information internally and to Estonian government agencies indicating that it is awaiting a final shipment from the Solikamsk Magnesium Plant, which should help it get through the coming winter, Postimees has learned. Silmet has pledged to sever its supply chain ties with Solikamsk by the end of this year.
In a statement published on its website, Neo said: "As part of Neo's preparations for Silmet 2.0, the facility is ending its current feedstock arrangement and will transition to new suppliers." Company spokesperson Vasileios Tsianos told Postimees in response to its questions that more information would be made public when the time was right.
Meanwhile, Neo is making changes to Silmet's existing production schedule that will result in reduced output and temporary production shutdowns at its existing light rare earth separation facility.
"It's good that our country's message got through — Russian raw materials pose a critical risk to production and buying them puts money in the hands of those who should not be profiting from the Western world," Prime Minister Kristen Michal (Reform) told Postimees.
ERR News reported on Thursday that a Russian company supplying rare earths to Estonia's Silmet was removed from the European Union's proposed 22nd sanctions package at Estonia's request. Foreign Minister Margus Tsahkna said on October 10 that Estonia had been pressuring the Sillamäe-based NPM Silmet and its owner Neo Group to find alternative suppliers and set a deadline for ending its dealings with the Russian supplier.
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