Press center

Integral Readiness of Udokan Mining and Metallurgical Plant Construction Project is 40 Percent

Integral Readiness of Udokan Mining and Metallurgical Plant Construction Project is 40 Percent

This was stated by the Chairman of the Board of Directors of Baikal Mining Company Mr.Valery Kazikaev in the course of the 7th congress of miners held on November 27, 2020 in Moscow.

As Mr.Kazikaev pointed out: “The project for the development of the largest copper deposit in Russia is being implemented timely; to date integral readiness of Udokan Mining and Metallurgical Plant construction makes up more than 40%.”

Construction of access road and the second overhead line will reach completion shortly. Udokan MMP substation with the capacity of 50 MW has been put into operation at the deposit, a second power unit with the capacity of 146 MW is under construction.

Outotec has been delivering components of process equipment to Udokan from several EU countries and China throughout the whole year, overall, within the established timelines. Two out of the six mills have been installed in the grinding building. Capital mining operations started six months earlier than the original date, and it is planned to mine more than a million ton of ore prior to the start of the commercial operation of the pit.

Mining will be performed at Zapadny pit until 2027. Naminga pit, underground operations and satellite areas will be put into operation at the next stage.

As Mr.Kazikaev informed, project timelines were not affected by COVID pandemic. It is planned to complete construction by mid-2022 and proceed to operation shortly after that, starting commercial mining and processing of 12 mtpa of ore. The plant will produce 135 - 137 kt of fine copper in copper cathodes (50%) and sulphide concentrate (50%).

He stated that presently the company was preparing for the engineering of the second stage of the plant.

According to Mr.Kazikaev, the market environment is beneficial for successful project implementation, with the copper prices being at the record level for the past 2 years. The prices are bullish amid the positive metal demand growth statistics in China and production cutbacks in the majority of the regions globally, including Chile and Peru. Overall, copper price growth reflects the system dynamics due to the development of “green” technologies and electrical equipment.

Reference only:
BMC LLC, a member of the multi-profile USM group of companies (founder and main shareholder – Mr. A.B. Usmanov), is the operator of the project for the development of Udokan copper deposit. The project is being implemented in accordance with the license requirements of the State Commission under the Federal Agency for Subsoil Use, issued in 2008.
The deposit, located in Kalarsky district of the Trans-Baikal Territory, is the largest in Russia and one of the world's largest undeveloped copper deposits. The current plan for the development of Udokan involves the construction of an industrial complex at the deposit, focused on the production of cathode copper and sulfide concentrate.

BMC LLC Press service:
+7 915-438-02-72

27 November 2020