Udokan Copper and RusHydro sign cooperation agreement on sustainable development
MOSCOW, RUSSIA - Media OutReach - 6 September 2022 - Udokan Copper, the developer of Russia's largest copper deposit, and the energy company RusHydro have agreed to cooperate in the area of sustainable development.
The agreement was concluded on 6 September 2022, during the seventh Eastern Economic Forum, which is taking place in Vladivostok 5–8 September. Yerkozha Akylbek, Chairman of Udokan Copper's Board of Directors, signed the agreement on behalf of the Company.
The agreement makes provision for supplying Udokan Copper with low-carbon electricity from RusHydro. In addition, the parties plan to use free bilateral contracts for the purchase and sale of electricity, which will enable Udokan Copper to reduce its indirect emissions of greenhouse gases.
Udokan Copper aims to reduce its carbon footprint in order to help achieve the goals of the UN Framework Convention on Climate Change and the Paris Agreement. In its recently released Sustainability Report, the Company reported that it had invested RUB 764 million (USD 11.5 million) in 2021 in social responsibility projects and programmes in the Zabaikalye region, including for environmental measures.
Udokan Copper developed a climate strategy before beginning production and was the first company in Russia to use a methodology for estimating projected emissions in line with international standards. The Company's strategy outlines several scenarios for reducing the carbon intensity of production – notably, one option calls for reducing specific emissions by 75% by 2035, which would bring the Company closer to climate neutrality.
Noting that the power supply for the second phase of the Udokan plant would be provided in full by low-carbon electricity generated at the Ust-Ilimsk hydroelectric power station, Mr Akylbek said, "This measure will be a key instrument for reducing our carbon footprint in addition to the measures taken as part of our Climate Strategy."
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About Udokan Copper
Established in 2008, Udokan Copper is part of the diversified USM holding company. With copper resources exceeding 26 million tons, Udokan is Russia's largest copper deposit and one of the biggest in the world. The copper grade in accordance with the JORC Code is 1.05%.
The project will commission a mining and metallurgical plant that will produce 135,000 tons of copper per year. The Company aims to ensure that its products meet top quality and sustainability standards throughout their life cycle.