Clifford Chance has advised the Baikal Mining Company on an agreement with Renaissance Heavy Industries for the construction of the Udokan Mining and Metallurgical Plant. Baker McKenzie reportedly advised Renaissance on the deal, which is valued at approximately EUR 380 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. Construction is expected to be completed in 2022.
Clifford Chance describes Udokan (in the Zabaikalye region of Russia) as "the largest undeveloped copper deposit in Russia and one of the largest in the world." According to the firm, "the project is being financed under a syndicated loan of up to USD 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."
The Clifford Chance team was led by London-based Partner Sandy Hall and Moscow-based Counsel Ella Omelchenko, supported by London-based Senior Associate Irina Steinberg and Moscow-based Associate Nikolay Nesterov.