In 1949, a Soviet expedition in Siberia was looking for uranium to supply the national nuclear arsenal when it stumbled on a vast deposit of copper.

More than 70 years later, a mining complex in Russia's Far East between Lake Baikal and the Pacific Ocean is finally due to launch operations next year.

With copper key to the world's energy transition away from carbon, the hope is it will be a boon for Russia and beyond.

"The long-awaited project is a long-awaited event in the life of the Far East and the entire mining industry of Russia and the world," said Valery Kazikayev, chairman of Udokan Copper, the company developing the site.

Kazikayev, who makes the nine-hour journey by plane from Moscow to the mine twice a month, brought AFP journalists on a tour late September.

At an altitude of 2,000 metres (6,500 feet), the heavy snow covering the mine offers a glimpse at the difficulty of rendering it operable.

"The Soviet Union wasn't able to develop these deposits," Kazikayev, 66, said at the site, where construction began in 2019.

The mine is located both in a seismic zone and on permafrost -- ground that remains completely frozen all-year round. Temperatures can drop to minus 60 degrees Celsius (minus 76 degrees Fahrenheit) in the winter.

These conditions mean developing the site is "difficult", Kazikayev said, noting as a result that "construction is very expensive."

The new 'black gold'

The work of harvesting copper ore has begun and workers are busy setting explosives to blow up permafrost so digging can go ahead.

Holding more than 26 million tonnes of copper, the mine, some 6,500 kilometres (4,000 miles) east of Moscow, claims to be the largest untapped deposit in Russia and the third largest in the world.

To develop the project, Udokan Copper -- which purchased the license in 2008 and is part of billionaire Alisher Usmanov's USM holding company -- raised nearly $3 billion (2.5 billion euros) from Russian banks.

The company also took advantage of preferential conditions granted for developing Russia's Far East, a neglected and isolated region.

The substantial investment is expected to bear fruit.

The price of copper, dubbed the "new black gold", soared to historic heights this year -- and shows no signs of slowing.

"Over the next 15 years, the demand for copper will grow by 30 percent" as the "green economy" grows, said Yulia Buchneva, an analyst at Fitch Ratings in Moscow.

Copper plays a key role in renewable energies and green technologies, she explained, because of its thermal and electrical conductivity properties.&nbsp;

She cited in particular the growing production of electric vehicles, which rely on copper.

Udokan Copper is eyeing Asian markets, particularly China, South Korea and Japan, where demand is high.&nbsp;

To reach those markets, the company is relying on the Baikal-Amur Mainline track (BAM) railway, where work is ongoing.

The line was constructed in the early 1980s next to the deposits in part to realise the goal of extracting the region's mineral wealth.

Logistical challenges

The BAM, which spans more than 4,000 kilometres across Siberia to the Pacific, is a grandiose Soviet project and financial abyss.

Udokan Copper hopes eventually to send its cathodes and copper condensates by train to the Chinese border or Russian ports on the Sea of Japan.

Kazikayev notes the mine is 2,000 kilometres closer to Tokyo than to Moscow.

Still, in an isolated and icy expanse, the logistical challenges are massive.&nbsp;

The company has had to build a power station to supply the energy for the work.

It had to construct a road to the closest airport, which features a wooden terminal.

And it had to bring 4,000 construction workers from Siberia and ex-Soviet republics to the area, home to a few hundred members of the indigenous Evenk reindeer herding people.&nbsp;

The site's deputy general manager Alexei Yaschuk said the team is now used to extreme conditions.

"The main challenge is keeping the roads in working condition. Bulldozers are constantly working," the 44-year-old told AFP.

The only time they stop, he said, is when temperatures fall below minus 35 degrees and visibility is less than 50 metres (165 feet).

"The storms and snowfalls are pretty heavy here."

In 1949, a Soviet expedition in Siberia was looking for uranium to supply the national nuclear arsenal when it stumbled on a vast deposit of copper. More than 70 years later, a mining complex in Russia's Far East between Lake Baikal and the Pacific Ocean is finally due to launch operations next year.

In 1949, a Soviet expedition in Siberia was looking for uranium to supply the national nuclear arsenal when it stumbled on a vast deposit of copper. More than 70 years later, a mining complex in Russia's Far East between Lake Baikal and the Pacific Ocean is finally due to launch operations next year. With copper key to the world's energy transition away from carbon, the hope is it will be a boon for Russia and beyond. "The long-awaited project is a long-awaited event in the life of the Far East and the entire mining industry of Russia and the world," said Valery Kazikayev, chairman of Udokan Copper, the company developing the site. Kazikayev, who makes the nine-hour journey by plane from Moscow to the mine twice a month, brought AFP journalists on a tour late September. At an altitude of 2,000 metres (6,500 feet), the heavy snow covering the mine offers a glimpse at the difficulty of rendering it operable. "The Soviet Union wasn't able to develop these deposits," Kazikayev, 66, said at the site, where construction began in 2019. The mine is located both in a seismic zone and on permafrost -- ground that remains completely frozen all-year round. Temperatures can drop to minus 60 degrees Celsius (minus 76 degrees Fahrenheit) in the winter. These conditions mean developing the site is "difficult", Kazikayev said, noting as a result that "construction is very expensive." The new 'black gold' The work of harvesting copper ore has begun and workers are busy setting explosives to blow up permafrost so digging can go ahead. Holding more than 26 million tonnes of copper, the mine, some 6,500 kilometres (4,000 miles) east of Moscow, claims to be the largest untapped deposit in Russia and the third largest in the world. To develop the project, Udokan Copper -- which purchased the license in 2008 and is part of billionaire Alisher Usmanov's USM holding company -- raised nearly $3 billion (2.5 billion euros) from Russian banks. The company also took advantage of preferential conditions granted for developing Russia's Far East, a neglected and isolated region. The substantial investment is expected to bear fruit. The price of copper, dubbed the "new black gold", soared to historic heights this year -- and shows no signs of slowing. "Over the next 15 years, the demand for copper will grow by 30 percent" as the "green economy" grows, said Yulia Buchneva, an analyst at Fitch Ratings in Moscow. Copper plays a key role in renewable energies and green technologies, she explained, because of its thermal and electrical conductivity properties. She cited in particular the growing production of electric vehicles, which rely on copper. Udokan Copper is eyeing Asian markets, particularly China, South Korea and Japan, where demand is high. To reach those markets, the company is relying on the Baikal-Amur Mainline track (BAM) railway, where work is ongoing. The line was constructed in the early 1980s next to the deposits in part to realise the goal of extracting the region's mineral wealth. Logistical challenges The BAM, which spans more than 4,000 kilometres across Siberia to the Pacific, is a grandiose Soviet project and financial abyss. Udokan Copper hopes eventually to send its cathodes and copper condensates by train to the Chinese border or Russian ports on the Sea of Japan. Kazikayev notes the mine is 2,000 kilometres closer to Tokyo than to Moscow. Still, in an isolated and icy expanse, the logistical challenges are massive. The company has had to build a power station to supply the energy for the work. It had to construct a road to the closest airport, which features a wooden terminal. And it had to bring 4,000 construction workers from Siberia and ex-Soviet republics to the area, home to a few hundred members of the indigenous Evenk reindeer herding people. The site's deputy general manager Alexei Yaschuk said the team is now used to extreme conditions. "The main challenge is keeping the roads in working condition. Bulldozers are constantly working," the 44-year-old told AFP. The only time they stop, he said, is when temperatures fall below minus 35 degrees and visibility is less than 50 metres (165 feet). "The storms and snowfalls are pretty heavy here."

In Siberia, a copper mine hopes to become a global energy pivot

Ecuador`s market &nbsp;friendly President Lenin Moreno is cracking down on illegal gold miners, who are increasingly encroaching on formal mines, but keeping them away from an Australian billionaire`s concession for good may prove a tall order.

 
Moreno last month sent 4,000 troops and police to clear thousands of miners from a gold and copper mining concession belonging to Hancock Prospecting, controlled by Gina Rinehart, Australia`s wealthiest person.

 
Now, with the area under a 60 day state of emergency and military and police guarding nearby Buenos Aires parish, authorities say illegal mining, also known as wildcat mining, at the Imba &nbsp;2 concession has stopped.

But the move, which followed a request by Rinehart`s company that its contract is suspended due to the unrest, now risks sparking a backlash with locals.&nbsp;

For dwellers of the hardscrabble agricultural community, the "plastic city" of tents and makeshift restaurants near the mines brought a jolt of economic activity to the remote, mountainous area. Some wildcat miners pledge to return once the emergency measures end.

"This town was left poorer than it had been in a lifetime," said 50 year old Buenos Aires resident Alba Martinez, whose husband abandoned his crops when he went to work at the mine two years ago. After the operation, he and the couples` two sons also miners left town looking for work.

The standoff underscores a wider conundrum for governments in the developing world, including Latin American, African and Asian countries, as they seek to court big miners and the jobs and tax revenues they typically bring in while trying to avoid a backlash among locals, many of whom see wildcat prospecting as their birthright.&nbsp;

"Of course, illegal mining generates uncertainty," Ecuadorean Vice President Otto Sonnenholzner, who chairs a task force on combating illegal mining, told Reuters on the sidelines of a conference last month. "There`s no question of that. But what is certain is that the national government will not tolerate any illegal activity."

Moreno has courted the sector by eliminating a windfall tax on miners, lowering a sliding scale of royalty payments, and reducing a capital gains tax on mining company transfers.&nbsp;

Last year, Ecuador received $742 million in foreign direct investment in the mining sector, more than double 2017 levels.&nbsp;

Moreno cheered the recent opening of the Chinese-owned Mirador copper mine in southern Ecuador, as well as progress at SolGold PLC`s Cascabel project in mountainous Imbabura province. That is where the concessions of Hancock`s local subsidiary, Hanrine, are also located.&nbsp; 
But obstacles have emerged. Communities near the Cascabel mine challenged the project, seeking a popular referendum. That has been turned back by Ecuador`s Constitutional Court, but similar challenges are pending.

Several companies, including Canadian explorers Core Gold Inc and Luminex Resources Corp, have alerted investors to risks posed by illegal miners, ranging from the depletion of reserves to environmental damages for which they could be held accountable.&nbsp;

Hancock declined to comment. Core Gold and Luminex did not respond to requests for comment. 
`THE PEOPLE HAVE LEFT` 
Illegal miners flocked to Hanrine`s Imba 2 concession soon after a farmer struck fool`s gold while building a nearby road in late 2017. As the ensuing gold rush attracted thousands, the government grew concerned about human trafficking, environmental damages and extortion by armed rebel groups.

As a result, Hanrine could not access the area. In March 2018, authorities issued a resolution ordering the end of illegal mining on the concession.&nbsp;

But the wildcat mining continued to grow, and this March Hanrine requested that its contract be suspended so that the clock on its four year exploration license would stop ticking, according to Santiago Chamorro, who coordinates mining policy for Ecuador`s northern region. He said the suspension was granted on July 19.&nbsp;

The state of emergency in Buenos Aires, one of several such crackdowns on illegal mining by Moreno, ended an economic boom that had taken hold in the area.

Buenos Aires resident Martinez, for example, had taken out loans to run a catering business, which disappeared overnight after authorities cleared the mine. On a Friday morning about two weeks ago, the 60 soldiers and police occupying the town vastly outnumbered residents out on the streets, while restaurants, inns and credit unions all had their doors shut.&nbsp;

"The people have left, and now we do not have anything. There is not a single source of jobs," she said. 
Chamorro said the development of formal, large-scale mining would bring jobs to the area, pointing to laws requiring 80per cent of mining workers to be Ecuadorean citizens and 60per cent of royalties from mine to be invested in nearby communities.

"Illegal mining is not the cause, but the effect...of the lack of employment, we have to be sincere," Chamorro said in an interview at his office in Ibarra, Imbabura`s provincial capital.&nbsp;

But in Buenos Aires, two former miners said they were plotting to return to the mine once the two month state of emergency ended and security forces retreated.&nbsp;

One of them, a 20 &nbsp;year old who gave his name as Alberto and said he earned up to $40 a day during nine months working at the illegal mine, was sceptical of the government`s assurances big mining would bring jobs.&nbsp;

"Once the company arrives, there will be nothing left for the people," he said.&nbsp;

Ecuador`s market friendly President Lenin Moreno is cracking down on illegal gold miners, who are increasingly encroaching on formal mines, but keeping them away from an Australian billionaire`s concession for good may prove a tall order.

Ecuador`s market friendly President Lenin Moreno is cracking down on illegal gold miners, who are increasingly encroaching on formal mines, but keeping them away from an Australian billionaire`s concession for good may prove a tall order. Moreno last month sent 4,000 troops and police to clear thousands of miners from a gold and copper mining concession belonging to Hancock Prospecting, controlled by Gina Rinehart, Australia`s wealthiest person. Now, with the area under a 60 day state of emergency and military and police guarding nearby Buenos Aires parish, authorities say illegal mining, also known as wildcat mining, at the Imba 2 concession has stopped. But the move, which followed a request by Rinehart`s company that its contract is suspended due to the unrest, now risks sparking a backlash with locals. For dwellers of the hardscrabble agricultural community, the "plastic city" of tents and makeshift restaurants near the mines brought a jolt of economic activity to the remote, mountainous area. Some wildcat miners pledge to return once the emergency measures end. "This town was left poorer than it had been in a lifetime," said 50 year old Buenos Aires resident Alba Martinez, whose husband abandoned his crops when he went to work at the mine two years ago. After the operation, he and the couples` two sons also miners left town looking for work. The standoff underscores a wider conundrum for governments in the developing world, including Latin American, African and Asian countries, as they seek to court big miners and the jobs and tax revenues they typically bring in while trying to avoid a backlash among locals, many of whom see wildcat prospecting as their birthright. "Of course, illegal mining generates uncertainty," Ecuadorean Vice President Otto Sonnenholzner, who chairs a task force on combating illegal mining, told Reuters on the sidelines of a conference last month. "There`s no question of that. But what is certain is that the national government will not tolerate any illegal activity." Moreno has courted the sector by eliminating a windfall tax on miners, lowering a sliding scale of royalty payments, and reducing a capital gains tax on mining company transfers. Last year, Ecuador received $742 million in foreign direct investment in the mining sector, more than double 2017 levels. Moreno cheered the recent opening of the Chinese-owned Mirador copper mine in southern Ecuador, as well as progress at SolGold PLC`s Cascabel project in mountainous Imbabura province. That is where the concessions of Hancock`s local subsidiary, Hanrine, are also located. But obstacles have emerged. Communities near the Cascabel mine challenged the project, seeking a popular referendum. That has been turned back by Ecuador`s Constitutional Court, but similar challenges are pending. Several companies, including Canadian explorers Core Gold Inc and Luminex Resources Corp, have alerted investors to risks posed by illegal miners, ranging from the depletion of reserves to environmental damages for which they could be held accountable. Hancock declined to comment. Core Gold and Luminex did not respond to requests for comment. `THE PEOPLE HAVE LEFT` Illegal miners flocked to Hanrine`s Imba 2 concession soon after a farmer struck fool`s gold while building a nearby road in late 2017. As the ensuing gold rush attracted thousands, the government grew concerned about human trafficking, environmental damages and extortion by armed rebel groups. As a result, Hanrine could not access the area. In March 2018, authorities issued a resolution ordering the end of illegal mining on the concession. But the wildcat mining continued to grow, and this March Hanrine requested that its contract be suspended so that the clock on its four year exploration license would stop ticking, according to Santiago Chamorro, who coordinates mining policy for Ecuador`s northern region. He said the suspension was granted on July 19. The state of emergency in Buenos Aires, one of several such crackdowns on illegal mining by Moreno, ended an economic boom that had taken hold in the area. Buenos Aires resident Martinez, for example, had taken out loans to run a catering business, which disappeared overnight after authorities cleared the mine. On a Friday morning about two weeks ago, the 60 soldiers and police occupying the town vastly outnumbered residents out on the streets, while restaurants, inns and credit unions all had their doors shut. "The people have left, and now we do not have anything. There is not a single source of jobs," she said. Chamorro said the development of formal, large-scale mining would bring jobs to the area, pointing to laws requiring 80per cent of mining workers to be Ecuadorean citizens and 60per cent of royalties from mine to be invested in nearby communities. "Illegal mining is not the cause, but the effect...of the lack of employment, we have to be sincere," Chamorro said in an interview at his office in Ibarra, Imbabura`s provincial capital. But in Buenos Aires, two former miners said they were plotting to return to the mine once the two month state of emergency ended and security forces retreated. One of them, a 20 year old who gave his name as Alberto and said he earned up to $40 a day during nine months working at the illegal mine, was sceptical of the government`s assurances big mining would bring jobs. "Once the company arrives, there will be nothing left for the people," he said.

Ecuador's crackdown on wildcatting at Australian mogul's mining lease faces backlash

Mining conglomerate Vedanta will invest up to $451 million (3000 crore Indian Rupees) in copper operations in India to double the capacity to 8 lakh tonnes by 2019, making the firm India&#39;s largest producer of the metal. 
 
The firm led by billionaire Anil Agrawal has a custom smelter, a refinery, phosphoric acid plant, sulphuric acid plant, copper rod plant and three captive power plants at Tuticorin in southern Indian state of Tamil Nadu as well as a refinery and two copper rod plants at Silvassa (Dadra and Nagar Haveli). 
 
&quot;We will invest 2,500-3,000 crore Indian Rupees in our copper operations to double the capacity from 400-kilogramme tonnes at present. This will happen by 2019,&quot; CEO of Vedanta&#39;s copper business R Ramnath told PTI. 
 
Copper, which accounts for over 30 per cent of Vedanta&#39;s total revenue, is an important industrial metal with extensive use in sectors such as power, telecom, consumer durables and electrical goods. 
 
The company has been granted around 250 acres of land by the Tamil Nadu state government in the special economic zone area in Titucorin, where it will set up another smelter of 400 kilo tonnes capacity, he added. 
 
After the addition of this facility, Vedanta will become India&#39;s largest copper producer. 
 
At present, India has a total copper capacity of 10 lakh tonnes, of which Hindalco accounts for 5 lakh tonnes followed by Vedanta (4 lakh tonnes) and state-run Hindustan Copper (1 lakh tonnes). 
 
In April-June quarter of 2016-17, Vedanta&#39;s revenue from copper business stood at $696 million, lower by 21 per cent year-on-year and 15 per cent sequentially. 
 
Production from the Tuticorin smelter stood at 100,000 tonnes of cathodes during the June quarter. 
 
The company said it expects the Tuticorin smelter to produce 4,00,000 tonnes of cathodes in 2016-17 fiscal, ending March 2017. 
 
(1 crore = 10 million ; 1 lakh = 100,000) 
 
(PTI) 
&nbsp;

After the addition of a facility in India's Tuticorin, Vedanta will become India's largest copper producer

Mining conglomerate Vedanta will invest up to $451 million (3000 crore Indian Rupees) in copper operations in India to double the capacity to 8 lakh tonnes by 2019, making the firm India's largest producer of the metal. The firm led by billionaire Anil Agrawal has a custom smelter, a refinery, phosphoric acid plant, sulphuric acid plant, copper rod plant and three captive power plants at Tuticorin in southern Indian state of Tamil Nadu as well as a refinery and two copper rod plants at Silvassa (Dadra and Nagar Haveli). "We will invest 2,500-3,000 crore Indian Rupees in our copper operations to double the capacity from 400-kilogramme tonnes at present. This will happen by 2019," CEO of Vedanta's copper business R Ramnath told PTI. Copper, which accounts for over 30 per cent of Vedanta's total revenue, is an important industrial metal with extensive use in sectors such as power, telecom, consumer durables and electrical goods. The company has been granted around 250 acres of land by the Tamil Nadu state government in the special economic zone area in Titucorin, where it will set up another smelter of 400 kilo tonnes capacity, he added. After the addition of this facility, Vedanta will become India's largest copper producer. At present, India has a total copper capacity of 10 lakh tonnes, of which Hindalco accounts for 5 lakh tonnes followed by Vedanta (4 lakh tonnes) and state-run Hindustan Copper (1 lakh tonnes). In April-June quarter of 2016-17, Vedanta's revenue from copper business stood at $696 million, lower by 21 per cent year-on-year and 15 per cent sequentially. Production from the Tuticorin smelter stood at 100,000 tonnes of cathodes during the June quarter. The company said it expects the Tuticorin smelter to produce 4,00,000 tonnes of cathodes in 2016-17 fiscal, ending March 2017. (1 crore = 10 million ; 1 lakh = 100,000) (PTI)

Vedanta to invest $451 million to double copper capacity

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