Russian state bank VEB will invest more than Rbs1.1tn ($13.4bn) into the development of the Baimskaya copper mine in the Chukotka region, reported Reuters.
The Baimskaya project includes a mine, processing plant, and key infrastructure such as a port and 428km road to enable year-round exports.
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The annual ore processing capacity is projected at 70 million tonnes (mt), with average yearly copper output of 300,000 tonnes (t) during the first ten full years.
The Baimskaya copper mine development is set to create approximately 6,000 jobs and generate more than Rbs3tn in tax revenue.
The mine’s operation is expected to increase Russia’s copper production by 25% and gold production by 4%.
Chukotka, a mountainous area situated in the far east of Russia, with about half its territory above the Arctic Circle, is poised to experience economic growth from this venture.
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By GlobalDataBaimskaya Management Company general director Georgy Fotin said: “We continue to build not just a mining and processing plant, but a powerful and technologically-advanced industrial complex that will strengthen Russia’s position in the global market and become a new point of growth in the Arctic.”
President Vladimir Putin has highlighted the Arctic as a strategic economic zone for Russia, with increased commercial activity along the Northern Sea Route (NSR) as the country pivots trade towards Asia amid Western sanctions.
The development of the Baimskaya deposit is projected to raise annual cargo traffic on the NSR by 2mt.
The project forms part of the Social and Economic Development Strategy for the Far East and Baikal Region through 2025, and for the Chukotka Autonomous Region through 2030.
Last month, Russia’s Natural Resources Ministry revealed plans to produce a minimum of 60,000t of lithium carbonate by 2030 to decrease the country’s dependence on imports and bolster its capacity to manufacture high-capacity electric batteries.
