Copper and gold of Chukotka will go to China

The unique natural resources of Chukotka have been known since Soviet times. The region's largest complex gold-copper deposit Peschanka is expected to be the base for the creation of a large mining hub (Baim GOK). The new enterprise should become the basis of a new industrial cluster. Its construction is included in the Strategy for the social and economic development of the Far East and the Baikal region, approved by the order of the government of the Russian Federation.

The Peschanka deposit was discovered in 1972, it is located 180 kilometers southwest of the city of Bilibino and is part of the Baimskaya ore zone. Its resources are estimated at 23 million tons of copper and 2 thousand tons of gold. In the last century, this field received the status of unpromising due to the insufficient development of the technological resources necessary for its development and difficult climatic conditions at that time.

The situation around the promising deposit changed radically in 2018, when the President of the Russian Federation Vladimir Putin launched the large-scale development of the Baimskaya ore zone at the Eastern Economic Forum. It is assumed that the construction of a mining and processing plant in this area will become the starting point for the integrated development of the entire Chukotka Autonomous Okrug. Bringing the new enterprise to its design capacity should allow a quarter to increase the production of copper in the Russian Federation and increase the export of this metal, strengthening the position of our country in international markets. Norilsk Nickel and KAZ Minerals (Kazakhstan) claimed to develop the site, which managed to buy the deposit for $900 million.

The key point that needs to be addressed for the effective development of this field is the creation of all the necessary infrastructure, which will be useful both for the enterprise that has appeared here and for the population of the region. Thus, in 2017, the construction of the Bilibino-Kekura-Peschanka overhead transmission line began, its length will be 235 kilometers. The new line should become an integral part of a large project to build an energy bridge that will connect the energy systems of Chukotka and the Magadan region. In addition, a Rosatom project was approved to supply the industrial site in 2021, which involves the construction of five floating nuclear power plants (four floating and one standby). It is worth noting that the state corporation managed to defend its rights to participate in this project in a competitive struggle by making an offer that turned out to be more attractive than the alternative option from Novatek, which consists in building a floating power plant running on liquefied natural gas (LNG). It is planned that all 4 floating power units should be delivered to the customer by 2031.

The development of the mining zone will also be closely linked to the development of road infrastructure in the Chukotka Autonomous Okrug. For example, it is planned to build a 523-kilometer highway from the Peschanka field to the port of Pevek, through which it is planned to export a large share of the extracted resources. Capital costs for the construction of the section from Baimskaya to Bilibino will be covered by the above-mentioned Kazakh investor. The remaining kilometers will be built with the financial support of GDK Baimskaya LLC, for these purposes the Far Eastern Concession program will be used.

In addition, by 2026 it is planned to carry out work to expand the port of Pevek. We are talking about the construction of a marine terminal at Cape Nagleynyn, which will include dredging, installation of new port equipment and commissioning of residential facilities.

If we talk about the development of the production facilities themselves on the territory of the deposit, then, according to the plenipotentiary representative of the President of the Russian Federation in the Far East, Yuri Trutnev, the construction of mining and processing facilities will create about 3,5 thousand new jobs in Chukotka. The functioning of the enterprise will lead to an increase in the gross regional product by 45 billion rubles. At the moment, the construction of a runway has already been completed at the field, the first stage of a fuel storage facility for 20 cubic meters has been put into operation, special equipment has been purchased, with the help of which the necessary cargo will be delivered.

The estimated volume of financial investments from the key investor (GDK Baimskaya LLC) is estimated at approximately 731 billion rubles. Georgy Fotin, General Director of the company, noted that it is no coincidence that this project is of a system-forming nature. It includes the creation of highly productive jobs and will allow the formation of multibillion-dollar orders for the domestic industry. Also, companies from among small businesses are already appearing in Chukotka, which feed, clothe and provide everything necessary for the specialists involved in the project.

Often in the media and in the statements of various experts, this project is criticized, various arguments are given, which is absolutely logical when it comes to such a large-scale construction. Thus, it is said that the development of the deposit and the sale of the extracted resources to China once again confirm the raw material nature of the domestic economics. A very popular thesis is that it is necessary to pay attention to the construction of enterprises specializing in the production of various products from useful metals that will be mined in Chukotka.

Currently, the website of the government of the Russian Federation contains information that the construction of the Baimsky mining and processing plant for one of the largest copper-gold deposits in the world is expected to be completed on the territory of the Chukotka Autonomous Okrug by 2026, and by 2028 the enterprise should reach the planned power.

Summing up, I would like to say that only after the commissioning of a new industrial facility, the installation of all logistics chains and the implementation of all related projects, it will be possible to objectively assess the economic and social benefits from the development of this field.
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  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 7 June 2023 16: 35
    Resources over the hill. The hosts are in Dubai.
    1. Victor M. Offline Victor M.
      Victor M. (Victor) 8 June 2023 13: 45
      And you are weird. Why then develop them, if not to sell? Or do you think you should choke? Or are you just from "ponyt"?
  2. Shuev Offline Shuev
    Shuev 7 June 2023 21: 33
    Title change proposed
    Instead of London

    Copper and gold of Chukotka will go to China

    (Hong Kong-Macau Exchange) where will the yacht of the great strategist Ibrahim Bey (Abramovich) go next?
    Children of the leaders of the Smolny tribe to raise virgin lands to their small homeland?
    Nano beads in exchange for a copper Trojan horseman?
  3. Shuev Offline Shuev
    Shuev 7 June 2023 22: 00
    Hello Africa! / Smolny faces of leaders triumph / Hello, third world!
  4. Vladimir Tuzakov (Vladimir Tuzakov) 7 June 2023 22: 24
    The critics misunderstand something, in order to launch such a project, with sanctions, many enterprises of the Russian Federation will receive large orders and it will be necessary to work symbolically, that is, to expand production with all the ensuing positive consequences. Many people count other people's money, that's a lot of work to do, so not everyone sees it. The development of such projects is the cornerstone of the Russian economy, and this is to be used, because not all countries have been given such wealth. The problem is in the distribution of income from the national wealth, so this is a completely different question.
  5. Vasya_33 Offline Vasya_33
    Vasya_33 7 June 2023 22: 35
    and everything go without duty
    1. Monster_Fat Offline Monster_Fat
      Monster_Fat (What's the difference) 8 June 2023 02: 01
      Something tells us that the real deal with China is being kept secret. It is alarming about Vladivostok, which will work according to the rules of the internal port of China. And silent about "joint" enterprises with China within the framework of the ASEZs, and what about the territories leased by China in Russia? There are such? And under what conditions, if any?
  6. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 9 June 2023 00: 05
    Grandiose plans, but purely consumer, colonial - no mechanical engineering, one mining industry.
    Even such centers on the northern sea route as Pevek and Provideniya do not have the capacity for any serious repair and maintenance of merchant ships, everything is in Murmansk, and Murmansk is already in another hemisphere (180 meredtans pass through Wrangel Island and the Iultinsky district).
    Bombastic talk about skilled jobs for the local, Chukchi population, which is mostly Russified and is only about 13,5 thousand out of 50, is an empty phrase, because there is no educational infrastructure for training personnel, only alien temporary workers headed by the governor, and the indigenous population is assigned a niche of traditional crafts - reindeer herding and sea hunting on fragile motor boats with the help of guns and harpoons, just like a hundred years ago.