With temperatures falling to minus 40 degrees Centigrade in winter, Chukotka in Russia’s north east is not an easy place to live. Still, although weather conditions are tough, the land is rich in gold and coal. The region has been showing stable growth ov

Regarding gold deposits, Chukotka is one of Russia's richest regions, with extraction expected to reach 30 tonnes per year by 2020.

Coal was discovered in Chukotka fifty years ago, and today coal mining is one of the region's most profitable industries. The climate, the permafrost and the remoteness of Chukotka render the extraction difficult, but the regional government believes the wealth of natural reserves will make up for the effort and the money spent. It has invested $US 15 million to provide new equipment and improve the mines.

Half a million tonnes were extracted last year, satisfying the needs of the whole region, as well as neighbouring Koryakia, Magadan and Yakutia, with some left over for export. Local officials are optimistic about development prospects.

“Demand will grow and production will rise. New industries will need energy from coal. We are ready for this growing demand and we’ll provide more coal if things develop further,” says Vladimir Bobylev, Deputy Chief of the Chukotka Autonomous Area.

Investment in oil and gas is also anticipated. The world’s giants, Canada’s Kinross and BHP Billiton of Australia both say they’re interested in exploring the area.