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. Last Updated: 07/27/2016

Bauxite Mine Closes

YEKATERINBURG, Ural Mountains -- Russia's South Urals bauxite mine, which supplied the Bogoslovsky and Urals aluminum smelters, has stopped work after demand for its output dried up following the abolition of internal tolling.

"We had to stop production at the end of January," the mine's chief executive Pyotr Novoselchenko said Monday. "The scrapping of internal tolling made customers resort to buying imported bauxite rather than buying it from South Urals, and this could lead to the mines' financial collapse and subsequent liquidation."

The government abolished from the beginning of the year internal tolling, a system under which traders could buy local raw materials for aluminum production, process it at Russian smelters and export the finished production free of taxes.