Mining city in the far East not to create, experts say

© 2017 by AFP / Stephane de SakutinБиткоин farm to create a cryptocurrency. Archival photoMining city in the far East not to create, experts say© 2017 AFP / Stephane de Sakutin

The idea to create a mining city in the far East questionable from the point of view of the energy conditions, it is better to build plants for mining, according to respondents RIA Novosti experts.

Earlier the Deputy of the state Duma Boris Chernyshev was sent to the Ministry of industry and trade and the Ministry of communications a letter with the initiative of city building, fully occupied by mining cryptocurrency, near a major hydroelectric power station in Siberia or the far East. In his opinion, this will allow citizens and government to a new source of income, and in the future — to create a competitor to Silicon valley.

It is better to create a factory

This idea is rather dubious, said RIA Novosti Director of the far Eastern center for economic development and Russia’s integration in the Asia Pacific region FEFU Alexander Abramov.

«About the creation of a city I’m not sure, because the city is not only currency, but also the residents, the authorities, we live in the city and don’t see this cryptocurrency. It is not for everyone. Here to create a farm, plant or group of plants for mining – that makes sense,» — said the Agency interlocutor.

However, the implementation of ideas need great free electrical power. «If you find these in the far East – Yes, it is possible to develop. The city – hardly. Still, most residents do not use cryptocurrency,» — stated the expert.

According to him, to develop this area in the far East makes sense, because a number of countries North-East Asia, «where many are actively using cryptocurrency and blockchain technology».

«We have to be in the trend, if we want to work with large economies,» — said Abramov.

According to him, Vladivostok – the city where the serious part of the business is concentrated in the service sector is trade, logistics, real estate turnover, «and these services can go to the blockchain technology.»

Of capacity needed by

Another expert, a leading researcher, Pacific Institute of geography DVO ran, candidate of economic Sciences Yuri Avdeev – I agree that in the far East no place for a city.

«People, including the inhabitants of the Far East, often do not understand the purpose of this site. Here we should talk not about the cryptocurrency, but the advantage is that it is necessary to use creating a product or service to the external market… What about the idea to build a mining city on the border with China – we still can’t make a normal border crossing, then how do we attract tourists?» the source said.

According to him, today the far East has the necessary capacity, «but now none of the plant does not work properly, reducing our energy requirements».

«However, if we consider the future development of mechanical engineering and shipbuilding in the far Eastern Federal district, we need this power», — the expert added.

In his opinion, mining-if the city and build something in the area of permafrost is to reduce the cost of cooling equipment.

To implementation very far

The idea to create a mining-town – «pie», the Director of the Institute of international business and Economics Vladivostok state University of Economics and service (VSUES), Professor Alexander Latkin.

«You need to wait the execution of the decree of the President to develop a legislative framework, and while these «zigzagging» — to anything,» — said the Agency interlocutor.

«Why it is proposed to establish a town on the border with China? In the 90s, everyone rushed to China for things, now go there mine. There is cheap electricity, there are profitable mine. And the creation of a mining-town on the border with China, apparently, involves the use of cheap energy — But «pie» idea to its realization is still very far», — believes Professor.

According to latkina if for mining will use its own, far East energy, then it is will not be enough. Now in some areas with the active work TOR and SPV are faced with energy shortages, he said.

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