A Clifford Chance cross-border team has advised Baikal Mining Company on a construction contract with Renaissance Heavy Industries to build the Udokan Mining and Metallurgical Plant.
The value of the contract is approximately EUR380 million.
Renaissance is to build an integrated plant that will include ore-dressing, leaching and crushing facilities as well as a conveyor line. The contractor will also conduct testing and installation of technological equipment supplied by Outotec. The works are planned to be completed in 2022.
Udokan (Zabaikalye region) is the largest undeveloped copper deposit in Russia and one of the largest in the world. The project is being financed under a syndicated loan of up to US$1.79 billion provided by VEB.RF, Gazprombank and Sberbank. It is expected to result in the creation of 2,400 jobs on the project itself and as many as 20,000 jobs in related industries.
Baikal Mining was established in 2008 with the right to use the subsoil for mining of copper and associated minerals.
The Clifford Chance team was led by partner Sandy Hall (Picture) and counsel Ella Omelchenko (Moscow), supported by senior associates Irina Steinberg (London) and associate Nikolay Nesterov (Moscow).
Law Firms: Clifford Chance;
Clients: Baikal Mining Company;