OREANDA-NEWS. On September 10, 2008 Metalloinvest, through its subsidiary Mikhailovsky GOK, announced that it has won the license to extract and process copper and other mineral resources from the Udokan deposit from the Natural Resources Ministry of the Russian Federation, reported the press-centre of Metalloinvest.

Metalloinvest is one of the largest and fastest growing mining and metals companies in Russia. It is comprised of the biggest CIS iron ore producer and has the largest iron ore reserves globally, and one of the leading steel producers within Russia.

Udokan, which is believed to be the world’s largest undeveloped but explored deposit, was discovered in 1949. It is situated in the Kalarsky Region of the Zabaikalie Territory, 30 km from Chara railway station. According to data provided by Rosnedra from  January 1, 2008, it shows  that the balance reserves  of  В+С1+С2 category amount  for  20 million  tons of copper (Cu content  is 1,45%).

As a result of winning the license for the development of the Udokan deposit, Metalloinvest becomes the owner of the one of the biggest copper reserves globally with total reserves of 20 million tonnes of pure metal. Following commencement of production, Metalloinvest will become one of the top ten copper producers in the world and will have successfully boosted both its resource base and diversified its production from its core strength in iron ore.

Metalloinvest has already started the preparatory work for the coordination and approval of the field development technical design based on the unique combination of the hydrometallurgical technology and the acid treatment technology.  Commercial production is anticipated under the tender terms within 5 years, with full capacity within seven years. The projected investment accounts for more than RUR100 bn.

Metalloinvest’s will utilise its proven expertise in developing substantial ore deposits. Mikhailovsky and Lebedinsky mining-and-processing works (GOKs) are developing  the world’s largest deposits of the Kursk Magnetic Anomaly. All of its enterprises have a track record of successfully building and supporting city communities and implementing comprehensive social programs in the local areas.