VEB, a Russian state development bank, is reportedly poised to invest over RUB1.1 trillion ($13.4bn) into the Baimskaya Copper Project in Chukotka, situated in the country’s far east.
The Baimskaya copper deposit was first unearthed in 1972. Its development is projected to generate approximately 6,000 jobs and contribute more than RUB3 trillion in tax revenue, reported Reuters.
Chukotka stands as Russia’s easternmost federal district, with a significant portion of its terrain located above the Arctic Circle.
The operational phase of the Baimskaya Copper Project could increase Russia’s copper production by 25% while boosting its gold output by 4%.
Baimskaya Management general director Georgy Fotin, has been quoted by the news agency, as saying: “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.”
The Arctic region has been identified by President Vladimir Putin as an area of strategic economic interest for Russia. Consequently, trade routes are being adjusted towards Asia via the Northern Sea Route (NSR) due to Western-imposed sanctions.
The development of the Baimskaya site is expected to increase annual cargo transported through the NSR by two million metric tons.
The Baimskaya copper deposit, located within the Bilibino district of Chukotka Autonomous Region, ranks among the globe’s most extensive copper reserves. Plans for its development include constructing a mining and processing facility (GOK) and relevant infrastructure using advanced direct flotation technology.
To facilitate efficient distribution of products from Baimsky GOK, key infrastructure is planned to be established, including a year-round port terminal and a 428km all-weather road connecting the deposit to the new port for transport via the Northern Sea Route.
This project aligns with both the Far East and Baikal Region Social and Economic Development Strategy until 2025 and the Chukotka Autonomous Region Social and Economic Development Strategy until 2030.
In total, 12 significant deposits of copper alongside gold and silver have been identified within this ore zone. After its discovery, extensive exploration activities continued until 1984.
Recent advancements have been facilitated by emerging technologies and preferential treatment policies in Russia’s far east. The Peschanka deposit, part of the Baimskaya licence area, contains JORC-standard measured, indicated, and inferred resources of 9.9 million tonnes of copper at an average grade of 0.39% and 16.6 million ounces of gold at an average grade of 0.21 g/t.
