Russia’s Udokan Copper has officially started production at its hydrometallurgical plant in the Far East, almost three years after a fire delayed the project’s launch.
A ceremony marking the start of operations was held this week, with Russian President Vladimir Putin in attendance.
The plant processes material from the Udokan deposit, the largest in the country, located in eastern Siberia’s Zabaykalsky Krai.
Operations were initially expected to begin in 2024. However, a fire in December 2023 damaged part of the cathode production facility and delayed the company’s plans.
Udokan had started producing copper concentrates from its deposit only months before the incident.
Copper cathode production begins
The hydrometallurgical plant is designed to produce copper cathodes with a purity of 99.99%.
Currently in its first stage, the site has a planned production capacity of 150,000 tonnes annually, with output intended for Russia’s domestic market as well as exports to China and other Asian markets.
Udokan is also progressing plans for a second stage that could eventually lift production capacity to 550,000 tonnes per year.
According to Udokan Copper Chairman Valery Kazikaev, the hydrometallurgical plant uses patented Russian technology developed by the company’s specialists.
The operation enters production at a time when global copper supplies, particularly refined metal, are under pressure from trade dislocations and mining disruptions, while expectations for long-term demand remain strong.
Copper prices on the London Metal Exchange (LME) are trading near record highs after the market experienced a brief but intense squeeze last month as traders competed for access to near-term metal.
Sanctions complicate market impact
Despite its scale, it remains uncertain how much Udokan’s additional production will affect the wider global copper market.
Udokan Copper is subject to US sanctions, potentially limiting where and how its metal can be traded internationally.
The company was established in 2008 to develop the Udokan deposit and forms part of the diversified Russian conglomerate USM Group, whose main shareholder is billionaire Alisher Usmanov.
Write to Jackson Chen at Mining.com.au
Image: Udokan Copper
