Russian metal producers hit by wave of fires – Reuters

In recent months, Russian metal producers have been hit by a wave of fires, including the latest in a series of incidents at the yet-to-be-launched Udokan plant in Trans-Baikal, Far Eastern Russia, which is set to become Russia's and the world's largest copper project.

Source: Reuters

Quote: "Russian metals producers have been hit by a wave of fires in recent months, including at an aluminium smelter and a zinc mine," the agency notes.

Details: Reuters emphasises that such fires in the context of sanctions pose problems for Russia in finding mining and processing equipment to replace damaged machinery.

Not only existing facilities are burning, but also those that are only in the project. 

For example, according to Reuters, on 30 December, a fire broke out at one of the largest copper projects in Russia and the world, damaging one of the buildings of a plant that has not yet been launched. Allegedly, a future extraction shop caught fire during construction work. 

Udokan Copper, the project operator, declined to comment on whether the damage would delay the start of copper cathode production at the plant. They only said they were still assessing the damage.

Udokan Copper planned to launch the hydrometallurgical plant in the second quarter of 2024 and produce up to 135,000 tonnes of cathode copper or copper concentrate a year, according to its statement on 20 December. Russia expects the company's annual capacity to increase to 150,000 tonnes in 2026.

Udokan is Russia's largest undeveloped copper deposit, which is already under Washington's sanctions.

At the same time, Russia is counting on the proximity of the Asian region, including China, and is already discussing off-take contracts with major buyers.

Background: 

• The construction of the largest mining and metallurgical plant, Udokan, on the copper deposit of the same name in Transbaikalia is being carried out by the Baikal Mining Company, which belongs to the holding of billionaire Alisher Usmanov.
• The project launch ceremony was attended by Russian President Vladimir Putin.
• Udokan is one of the world's largest and Russia's largest undeveloped copper deposits, with reserves of about 26.7 million tonnes.

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