Baikal Mining Company and JSC Far East Development Corporation have concluded a project implementation agreement for the development of Udokan copper deposit in Zabaikalye Priority Development Area. The document was signed by Chairman of the Board of Directors Valery Kazikaev and General Director of JSC Far East Development Corporation Aslan Kanukoev.
The investor shall build a modern mining and metallurgical plant to mine and process copper ore, produce cathode copper and saleable sulphide concentrate in Kalar municipal district of Zabaikalye Region. Investment into the project under the agreement with the management company will amount to RUR 75.9 bn net of VAT. It is expected that the first phase of the plant will come on stream in 2022. Production capacity shall make up 12 mtpa of ore with potential expansion up to 48 mtpa of ore.
“The project shall provide a powerful impetus for social and economic development of Zabaikalye Region. Development of Phase I of Udokan deposit will enable to create more than 1,800 jobs at the investor`s enterprise and 10,000 jobs in related sectors. Tax revenue and insurance payments of Baikal Mining Company to the budgets of all levels during the 10 years of project Phase I shall amount to approximately RUR 10 bn,” General Director of JSC Far East Development Corporation Aslan Kanukoev noted.
“Close proximity to transport infrastructure and industrial areas of APAC countries that will be the main consumers of the plant`s products will enable to achieve the maximum operational efficiency of the project,” Chairman of the Board of Directors Valery Kazikaev said.
Please be reminded that on August 1, 2019 Chairman of the Government of the Russian Federation Dmitry Medvedev signed a decree about establishment of Zabaikalye Priority Development Area. He called Udokan deposit development project the “key” project for the Priority Development Area.
At the first stage in the Priority Development Area it is expected to implement 15 investment projects in the mining, construction and agricultural sectors, mechanical engineering, wood processing and food industries. Implementation of these projects shall create more than 9,000 jobs and attract private investment in the amount of RUR 196 bn. Considering the signed agreement, 5 residents have been conducting business in Zabaikalye Priority Development Area up to date. Execution of the said projects with the total cost of RUR 109.3 bn will enable to create more than 2,200 jobs. 11 October 2019