About Udokan
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About Udokan

Company

Udokan Copper (earlier known as Baikal Mining Company) was established in 2008 to develop the Udokan Copper Deposit in Kalar District of the Trans-Baikal Region (Russia).

With more than 26 million tonnes of mineral resources, Udokan is Russia’s largest and one of the world’s largest undeveloped copper deposits. The project includes a mine and processing plant that will produce copper cathodes and sulfide concentrate. The first stage of the plant will deliver up to 135 thousand tonnes of copper per year.

Committed to care for the environment and responsible use of natural resources, we implement the best available technologies to minimize our environmental footprint. Udokan Copper will process ores using our own patented flotation and hydrometallurgical technological scheme.

Udokan is a pioneer greenfield project in the industry. Starting from the construction phase, we follow global best practices in ESG, work on reducing our carbon footprint, develop regional infrastructure, protect the environment and support local indigenous peoples' traditions.

Corporate Governance
Shareholder
Board of Directors
Management
Alisher Usmanov
USM Founder

Alisher Burkhanovich Usmanov is a key member of Russian and global business communities and a prominent international investor and philanthropist. According to Forbes and Bloomberg, Usmanov is one of the most influential persons on the planet.

Alisher Usmanov is the founder of USM, a private Russian holding company, bringing together highly successful businesses in the metals and mining, telecoms, technology and internet sectors.

USM’s assets include Metalloinvest, a major global producer and supplier of iron ore and steel products; Udokan copper, which holds the license to develop the world’s third largest copper deposit; Akkerman cement, one of the largest cement producers in Russia; MegaFon, a leader in Russia’s telecommunications market; ICS Holding, a leading producer and supplier of IT-equipment and digital solutions for the corporate and government sector. The group is a shareholder in the Centre for Research in Perspective Technologies, developer of a unified national track & trace digital system. USM is also an indirect shareholder of Mail.Ru Group, the leader in the Russian-language internet market, and owner of Russia’s leading social networks.

Valery Kazikaev
Chairman
Dmitry Tarasov
Board Member
Nazim Efendiev
Board Member
German Mironov
Board Member
Uluç Ergin
Board Member
Timur Belikov
Board Member
Sergey Evdokimov
Board Member
Olga Kharlamova
Board Member
Pavel Mitrofanov
Board Member
Maxim Poletaev
Board Member
Vakhtang Kocharov
Board Member
German Mironov
CEO
Alexey Yaschuk
The first Deputy CEO - Operating Officer
Yulia Shabala
Deputy CEO for Sustainable Development and Corporate Affairs
Vladimir Manuilov
Deputy CEO for Finance and Control
Eduard Shvedovsky
Deputy CEO for Security
Maria Kovalenko
Deputy CEO for Supply Chain Management
Maxim Nazarov
Deputy CEO for Engineering and Construction
Eugeniy Zhuchkov
Head of External Relations
Dmitry Sakharov
Director for Corporate Financing
Michael Kavinin
Director for Economics, Financial Planning and Reporting
Tatiana Alyukova
Legal Director
Dmitry Deordiev
Director for Project Controls
Vladislav Gromchenko
HR Director
Mikhail Makeev
Director of Internal Audit

Udokan Deposit

Mining and Metallurgical Plant

Udokan Mining and Metallurgical Plant will produce copper cathodes and sulfide concentrate.

The first stage of the plant will deliver up to 135 thousand tonnes of copper per year. Udokan ores will be processed using a unique flotation and hydrometallurgy scheme.

We are now Udokan Copper

Project Phases

2008-2016 2017-2018 2019 2020 2021
  • Exploration and JORC mineral resource update
  • International feasibility study
  • Development and evaluation of the technology process
  • Approval of copper, associated components and other mineral reserves
2008-2016
  • Udokan Mining and Metallurgical Plant design
  • Procurement of groundwater exploration and extraction permit for Ingamakitskoe Deposit
  • Public discussions of the assets subject to state environmental examination
  • Approval issued upon the state examination of the project
2017-2018
  • Start of power infrastructure construction (substation and transmission lines)
  • Start of road infrastructure construction (Novaya Chara - Udokan Mine and Processing Plant Road and Nuringnakan River Bridge)
  • Start of processing facility construction (groundwork and foundation)
  • Equipment agreement signed with Outotec
  • $1.79 billion syndicated loan extended by VEB.RF, Sberbank and GPB
  • General contractor agreement signed with Renaissance Heavy Industries
  • Project included in Zabaikalye Territory of Accelerated Development
2019
  • Core equipment delivery
  • Processing plant construction (installation of steel structures and equipment)
  • Completion of access road and Nuringnakan River Bridge
  • Construction of residential camp, development headquarters, Boiler 1 and other facilities
  • Completion of processing plant facilities
  • Completion of power infrastructure
2020
  • Start of rail warehouse construction
  • Completion of concrete work
  • Completion of core equipment installation
  • Start of cold tests
2021
Infrastructure
Rail
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Novaya Chara station of Baikal-Amur Mainline is located in immediate proximity to the deposit site.

Russian Railways is increasing Novaya Chara capacity and building additional railway lines to process Udokan freight keeping up with the project schedule.

Chineiskaya railway line connects Udokan deposit with Baikal-Amur Mainline.

Udokan Copper started constructing the railroad warehouse with rail loading terminals near Novaya Chara station. The railroad warehouse will process cargo from the plant and will provide sufficient capacity for Stage 2 of the project as well.

Road
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Udokan Copper completed a major infrastructure project, connecting Novaya Chara station with the Udokan Mining and Metallurgical Plant.

The new 17-kilometer road is 6 meters wide to support the transportation of 700 thousand tonnes of cargo per year.

It will be the key logistics asset supporting deliveries to Udokan MMP as well as transportation of its products to the key regional transportation artery, Baikal-Amur Mainline.

Air
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The airport at the settlement of Chara is a gateway to the north of the Trans-Baikal Region.

Udokan Copper created an airport redesign project that includes the construction of a new 80 passenger-per-hour terminal with a medical office, maternity room and a food court. Runway and taxiways will be reconstructed and the territory - landscaped. Airfield will be lit to support 24x7 operation.

Project documentation was submitted to the Trans-Baikal Region authorities, and the reconstruction will start in 2021.

Power
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A sufficient amount of electric power is required to build and operate the MMP. The existing 220 kV Chara substation fully covers project construction needs.

To support the project after launch the construction of a 220 kV power line from Tynda to Chara is required. The construction will be completed by the end of 2021.

To cover the need for power at the operational stage of the project the build-up of the following power infrastructure has been completed:

  • Line section starting from Chara substation to the MMP site
  • 50 MW Udokan MMP substation
  • 146 MW Bluzhdayushchy substation
History
1947 1949 1952-1966 1975-2000 2008

1947

Corresponding Member of the Academy of Sciences of the USSR Yuri Bilibin demonstrated the rationale for exploration in the area from the source of the Vitim river to the middle course of the Olyokma river, suggesting the similarity of the geological structure of this area with Central African Copperbelt.

1949

Lead Geologist of Sosnov Expedition Elizaveta Burova discovered the unique Udokan copper deposit on a trail along an unnamed stream, a left tributary to the Naminga river.

1952-1966

Udokan Exploration Team was established in 1952. Reconnaissance of the Udokan copper deposit was completed in 1953—1958. In 1960, a government resolution on the accelerated exploration of the Udokan deposit was issued with the objective to complete the first stage of exploration by 1964. When the exploration was completed, further work at the Udokan deposit was suspended in 1965 and shut down in 1966. The photograph shows the members of Udokan Exploration Team.

1975-2000

The new life of Udokan deposit started with the beginning of construction of Baikal-Amur Mainline in 1975. Over the next five years, detailed exploration was conducted within the pit contour (70% of the overall copper ore reserves), bulk samples were tested, and ore reserves were recalculated. Mine and processing facility with a copper-chemical plant have been slated for construction since 1970s. Udokan MMP project designs were prepared in 1969, 1972, 1980, 1995 and 2000. Moscow State Expertise classified these projects as not feasible. The photo shows Zapadny section of the deposit, 1976.

2008

Mikhailovsky Mining and Processing Plant won the mining license for Udokan deposit in an open tender. Baikal Mining Company (BGK) was established to develop the deposit. Since 2008, Baikal Mining Company, today known as Udokan Copper, has been holding the mining permit for copper and associated components based on license CIT 14956 TE issued by the Russian Federal Agency for Mineral Resources. The photograph shows CEO of Mikhailovsky MPP Andrey Varichev in a meeting with the Head of Kalar District.

Metal of the Future

Copper is an indispensable metal that fueled revolutionary progress in the history of the humankind. Copper Age, the period of early metalworking in Eurasia, gave birth to metallurgy.



Due to its high electrical and thermal conductivity, corrosion resistance and strength, copper is in high demand, especially in high-tech industries. Today, scientists call the modern stage of the industry development the New Copper Age.

Uses of Copper

Telecommunications
Copper has always been and remains the driver of revolutionary changes in telecommunications, from phones to high-speed computer links, satellite technologies and wireless communications.
Engineering Infrastructure
Copper is indispensable in construction; it is the most important metal used in production of wires, water and heating pipes and construction materials. Copper has the highest electrical and thermal conductivity out of all metals, and it is widely used in the energy industry.
Low-Carbon and Green Technologies
Copper is more important for the renewable energy than it is for traditional power plants. Copper usage intensity in renewable energy is four to six times higher than in nuclear and coal power stations. Wind and solar photovoltaic energy systems use the most copper among all renewable energy technologies.
Electric Vehicles
Passenger electric vehicle manufacturers will require more than 3.7 million tonnes of copper per year by 2040.
Copper in Healthcare
Copper is an important biological element necessary for normal development of plants and animals. It accelerates chemical processes within cells. Copper is also a natural antibacterial agent. In 2008, antimicrobial properties of copper surfaces were officially recognized by the United States, and in 2009, the effectiveness of copper and its alloys was proven at inactivating the A/H1N1 influenza virus.