The RCC project in the Khabarovsk Territory will receive a preferential loan from the state.
The Far East Development Fund will provide to the Company a long-term preferential loan for the construction of a mining and processing plant at the Malmyzh copper deposit.
Russian Copper Company (JSC RCC) and the Far East Development Fund (FEDF, part of the VEB.RF Group) have signed an agreement on financing the construction of a mining and processing plant at the Malmyzh gold-copper deposit in the Khabarovsk Territory.
The agreement was signed at the Eastern Economic Forum (EEF) in Vladivostok in the presence of Yury Trutnev, the Deputy Prime Minister of the Russian Federation and Presidential Plenipotentiary Envoy to the Far Eastern Federal District.
The agreement was signed by Vsevolod Levin, RCC President, and Alexei Chekunkov, CEO of the Far East Development Fund.
According to the agreements, the Fund will provide to RCC a long-term preferential loan in the amount of RUB 7 Bln. The funds will be used for designing, equipment purchasing, and constructing a mining and processing plant at the Malmyzh copper deposit. In addition, the initiator may raise additional financing for the project in the form of a syndicated loan from VEB.RF, Gazprombank, and Sberbank as part of the Project Finance Factory operated by VEB.RF. The corresponding agreement was also signed in the wings of the EEF. This mechanism provides for granting a state subsidy to compensate for the growth of the key rate for all tranches of partner banks over the entire loan term.
A comment by Alexei Chekunkov, CEO of the Far East Development Fund: “Developing the Malmyzh deposit is a classic catalyst project. The Fund's investments, which on a project-wide scale are relatively small, will help to launch the process of creating a branch industrial center that will become one of the powerful drivers for the development of the region’s economy”.
A comment by RCC President Vsevolod Levin: “To develop the Malmyzh deposit in two stages, in 2023-2024 the launch of a mining and processing plant with the annual processing capacity of 56 mln tons of ore is planned. The new enterprise will create 2,500 high-performance jobs. The support from the Fund and from major commercial banks emphasizes the high importance of this project for the region’s economy and the solution of the state priority task of developing the Russian Far East”.
Photos courtesy of TASS.