RZD CEO Vladimir Yakunin, left, and Metalloinvest owner Alisher Usmanov, right, are endeavoring to win the support of President Dmitry Medvedev.
Photo: Dmitry Azarov
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The Copper Riders
The battle for the world biggest Udokan copper deposit has reached the final stage. Two bidders have remained a week before the announcement of tender result. They are the consortiums led by RZD CEO Vladimir Yakunin and Metalloinvest owner Alisher Usmanov. Both of them are endeavoring to win the support of President Dmitry Medvedev – Usmanov met with Medvedev yesterday and Yakunin’s visit is slated for today. Both bidders are eying the subsoil of Mongolia that is geologically tied with Udokan and RZD is yet a step ahead of the rival.
It emerged yesterday that, of five bidders applying for Udokan, two will continue the battle. One of them is Russian Copper Consortium of Russian Railway (RZD), Ural Mining & Metallurgical Co. (UGMK) and Development Bank (VEB). The second one is the alliance of Mikhailovsky GOK Mining and Processing Enterprise of Alisher Usmanov’s Metalloinvest and government-run Rostekhnologii. The tender results are to be determined September 17.
The Udokan copper deposit of Transbaikalia is Russia’s biggest and the world third deposit in terms of the copper reserves, which are estimated at 19.7 million tons. The successful bidder will have a license for 20 years. The starting payment amounts to 4.5 billion ruble and the project investments are estimated at $1.5 billion to $2 billion.
Both bidders are resolved to win. Usmanov met with Russia’s President Dmitry Medvedev Tuesday and Yakunin will visit him today. The RZD CEO said he wouldn’t discuss Udokan as the chances of Russian Copper were very high already. “We think that objective consideration of bids will reveal our advantage,” Yakunin specified. But the sources say Medvedev learnt more about Ukokan yesterday and the deposit will be one of the highlights of his today’s meeting with Yakunin.
Of interest is that Rostekhnologii and RZD are fighting for another, even bigger project that is geologically and geographically tied with Udokan. The matter at stake is the development of Mongolian subsoil and it appears RZD has outpaced the competitor in this undertaking.
www.kommersant.com
All the Article in Russian as of Sep. 10, 2008
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