Press center

Agreement of Intent signed to implement second stage of Udokan project – the development of Russia’s largest copper deposit in Trans-Baikal Region

Agreement of Intent signed to implement second stage of Udokan project – the development of Russia’s largest copper deposit in Trans-Baikal Region
Udokan Copper (an affiliate of the USM diversified holding, founder and major shareholder - Alisher Usmanov), the Ministry for Development of the Russian Far East and Arctic, the Government of the Trans-Baikal Region and the Far East and Arctic Development Corporation signed an agreement of intent to implement the second phase of the Udokan copper deposit development project.
The agreement was signed on September 3, 2021 as part of the Eastern Economic Forum, by the Minister for the Development of the Russian Far East and Arctic Alexei Chekunkov, Governor of the Trans-Baikal Region Alexander Osipov, Chairman of the Board of Directors of Udokan Copper Valeri Kazikaev and Acting General Director of the Far East and Arctic Development Corporation Igor Nosov.
The agreement establishes partnership and fosters long-term mutually beneficial cooperation among the parties in order to implement the project efficiently. The second stage of Udokan mining and metallurgical plant increases its overall processing capacity up to approx. 40 mtpa of ore (up from the volume of the first stage, which totals up to 15 mtpa, based on the processing equipment capacities). Udokan Copper investments will amount to ca. RUB 289 billion (~USD 4 billion). The final framework of the investment project, including its exact cost, will be determined after the project and budget documentation is developed and expert reviews and approvals are obtained.
Udokan Copper is currently preparing an international feasibility study for the second stage. The construction of the Udokan mining and metallurgical plant will be financed on the basis of the Project Finance Factory, operated by VEB.RF.
The Ministry for Development of the Russian Far East and Arctic and the Government of the Trans-Baikal Region will assist the investment project with building the power, airport, railroad, road, engineering, social, and housing infrastructure facilities.
Valeri Kazikaev, the Chairman of the Udokan Copper Board of Directors, says: “We are currently advancing with the construction of the mining and metallurgical plant at the Udokan deposit. It complies with the high environmental standards of today, and it is no exaggeration to say that it is to become an exemplary “green” project. Simultaneously, we are building the transport and power infrastructure, the future plant’s technological facilities and a number of auxiliary sites. We have established a unique processing chain, which will enable the manufacture of high-value added products at Udokan - marketable quality cathode copper and copper-rich sulfide concentrate. The public-private partnership support has expedited the implementation of the first stage of the project and has allowed us to move on to the second stage”.

03 September 2021