CHARA, Russia 

Udokan, Russia's largest copper mine, located in eastern Siberia, is scheduled to start exports next year.

Located between Lake Baikal in the west and the Pacific Ocean in the east, the mine is the largest copper mine in Russia and the third-largest copper greenfield mine in the world, with approximately 26.7 million tons of reserves.

The remote setting of the mine has made its development very challenging due to the harsh climatic conditions where temperatures drop to as low as minus 50 degrees.

The mine was discovered by geologists exploring uranium in Russia's Zabaykalsky Krai region in Siberia in 1949, but the necessary work to develop the mine could not be carried out for more than 70 years.

USM Holding, 49 percent of which is owned by the Russian and Uzbek billionaire Alisher Usmanov, started the work in Udokan by obtaining the necessary licenses in 2008, and it is now scheduled to open next year.

In the first production stage, Udokan plans to produce 135 thousand tons of copper annually and increase output to 400 thousand tons for exports annually when fully operational.

The extensive Western sanctions on Russia also hindered the project, although the targeted market for exports is Asia, not the West, with a large share destined for the Chinese market due to its close geographical proximity.

Copper: The Metal of the Future

Copper is one of the most important metals in the world, used in everything from automobiles to computer chips to food processors to heavy industry production.

Thanks to its conductivity, copper also plays a key role in renewable energy production projects, especially solar panels and wind turbines.

Research by S&P Global shows that global copper demand will reach 50 million metric tons by 2035, as the world takes steps towards zero emission targets to reduce pollution.

Because of its role in green energy developments, copper is also known as the metal of the future.

Logistical challenges

The mine itself was not the only infrastructure that needed development to gain sufficient access to its reserves. The 40-year-old wooden terminal at the local Chara airport only allows planes to land during daylight hours, hindering access and necessitating upgrades.

Udokan Copper, a USM Holding subsidiary, started to expand the airport capacity, and work is ongoing to develop the road and railway infrastructure in the region to ensure efficient transportation of the copper.

Large trucks with a cargo-carrying capacity of 136 tons are used in the mine, which is located in a mountainous region.

Two power stations with capacities of 50 and 146 megawatts were also built in the region to meet the mine's energy needs.

Possible effects of sanctions

Sanctions imposed by Western countries on Russia impact the country's economy in many sectors.

However, chairman and USM CEO Erkozha Akylbek told Anadolu Agency that the mine was not hit by the sanctions as all the necessary equipment for the mine was already supplied and the target market is more Asia-bound. Nonetheless, he is confident that given the importance of copper as a metal globally, he sees the company managing sanctions problems, should they arise.

"Our main focus is on China, India and Asia-Pacific as potential markets in terms of the Trans-Baikal region where Udokan is located, the Baikal-Amur railway line and proximity to China," he said.

Akylbek envisages that demand for copper will be relatively high considering the green energy transition, and with a global copper deficit, he anticipates that Udokan will play a pivotal role in reducing this gap in the future.

Commenting on the harsh conditions in the region, Udokan Technological Complex Chief Engineer Olga Bobina said that technological developments and seismic analysis have ensured the realization of the project, which during the Soviet Union era was not available and therefore unprofitable.

"We are now waiting for the mine to become operational and are very excited about it," Bobina added.