Russian mining company Udokan Copper announced on Wednesday that it has begun producing copper cathodes at its plant in Russia's Far East, nearly three years after a fire delayed the facility's operational launch. President Vladimir Putin joined the launch ceremony via video link from Vladivostok, underscoring the project's significance for Russia's mining sector. Udokan Copper, Russia's largest copper project, currently operates under U.S. sanctions.
The company initiated copper concentrate production in September 2023 at its primary facility. The operator had originally scheduled the launch of its hydrometallurgical plant for the second quarter of 2024, with planned capacity to produce up to 135,000 tons of copper annually in cathode form through the solvent extraction-electrowinning (SX-EW) process or as concentrate. A fire in December 2023 caused significant damage to portions of the cathode production facility before it could enter operation as scheduled.
While the fire impacted cathode production preparations, concentrate production operations remained unaffected. Western sanctions imposed on Russia have complicated the company's ability to import essential mining and processing equipment required to replace damaged machinery. Valery Kazikaev, chairman of the board of directors of Udokan Copper, emphasized that the hydrometallurgical plant utilizes patented Russian technology developed by the company's specialists.
Output from the project's initial phase is anticipated to increase to 150,000 tons annually beginning in 2026, with supplies targeted at both the Russian domestic market and export markets in China and other Asian regions. Established in 2008 to develop the Udokan deposit, Udokan Copper operates as part of the diversified USM Group, with Russian billionaire Alisher Usmanov serving as its primary shareholder. The first phase investment was valued at $2.9 billion, supported by a syndicated loan from Sberbank, Gazprombank, and VEB under a state-backed project finance arrangement.
Looking ahead, the company's second phase of development, previously scheduled for launch in 2028, is expected to increase annual copper production to approximately 550,000 tons. This expansion could position Udokan among the world's five largest copper producers upon completion. Market conditions remain favorable for expanded production.
The International Copper Study Group forecasts global refined copper demand of 28.66 million tons in 2026 and 29.24 million tons in 2027, with the market expected to maintain a surplus position during these periods. Source: Reuters, via Mining.com, September 2, 2026
Source: mining.com