Russian largest copper producer to invest 40 bln rubles in copper project

Salavatskoye LLC plans to build a copper mine and processing plant in Bashkortostan at a cost of 40 billion rubles, the Chelyabinsk Region company's director, Tagir Bakhtigareyev said.

"Upon confirmation of copper ore resources at this property, we plan to implement a major investment project to develop the Salavatskoye copper ore deposit, with the construction of a mine and processing plant in the Abzelilovsky district [...] The amount of investment will exceed 40 billion rubles," Bakhtigareyev said a regional government meeting on Monday.

The company plans to complete collecting samples and restoring boreholes by the end of 2025, conduct geological studies, book reserves with the government and do survey work in 2026-2027, and do design work and undergo expert evaluation and approvals in 2027. Construction and installation work is scheduled for 2027-2029 and the new enterprise is expected to go into operation in 2029.

The "new mine and processing plant will be built on the model of Tominsky GOK in Chelyabinsk Region, one of the most modern and environmentally friendly enterprises in the country," Bakhtigareyev said.

The project is expected to create 1,500 jobs and generate 1.5 billion rubles in tax revenues annually for governments at various levels.

"Our company has begun the process of reregistering the legal entity in the Abzelilovsky district. Our official office opened in the village of Askarovo last week. We're talking about the project there and also accepting applications for work and targeted agreements for graduates. We see genuine interest from district residents in the investment project and the opportunities that it provides and will provide for people," Bakhtigareyev said.

He said the company will prioritize hiring local residents and "we anticipate that 90% of the combine's workers will be residents of nearby population centers."

He also said that the company would "under no circumstances encroach" on the Kryktytau Ridge, a 60-km long historical and natural attraction consisting of volcanic rock formations in the Abzelilovsky and Beloretsky districts.

"The boundaries of the licensed area are located 5 km from Kryktytau Ridge. The enterprise's work will not affect the ridge, the ridge won't be touched," Bakhtigareyev said.

Earlier reports citing the district administration said that Russian Copper Company Group (RCC) won the auction to explore for and mine copper ore at the Salavatsky property in Bashkortostan. Salavatskoye LLC, the group division that holds the license, began exploring the deposit in the summer of 2020. The work was done by a specialized contractor in compliance with all industrial and environmental safety requirements. The company planned to make a decision on developing the deposit based on the exploration results.

However, it faced protests from local activists. Residents feared the future mine would pollute groundwater and planned to ask the leader of Bashkortostan to designate the Kryktytau Ridge and conservation area.

In August 2020, the Abzelilovsky district administration announced that the company had suspended exploration work and removed its equipment from the deposit at the request of district administration head Ildar Nafikov.

"Due to the heightened concerns of the population and the real threat of provocation by some hotheads, I asked the management of Russian Copper Company to suspend geological exploration at the Salavatskoye copper deposit in Abzelilovsky district. Having considered by request, the company agreed to pause work and remove equipment from the forest," Nafikov was quoted as saying in a press release.

The 2.09-sqm-km Salavatsky property has estimated forecast reserves of 208.7 million tonnes of ore and 992,600 tonnes of copper. Salavatskoye LLC's exploration and mining license to the deposit is valid until 2044.

RCC is a diversified, vertically integrated group that is one of Russia's largest copper producers.