VEB.RF and VTB will provide project financing for the development of the Chernogorskoye field in the Krasnoyarsk Territory

Syndicate of VEB.RF and VTB signed a syndicated loan agreement with OOO Chernogorskaya GRK*

Commissioning of the mining and processing complex is scheduled for 2024

The implementation of the project will create 5,500 jobs during the construction phase and more than 1,600 jobs during the operational phase

VEB.RF, VTB and OOO Chernogorskaya GRK signed a syndicated loan agreement for the construction of the first stage of a mining and processing complex based on the Chernogorskoye deposit located in the Krasnoyarsk Territory.

The total project budget is about 240 billion rubles, the amount of financing from VEB.RF and VTB will be up to 180 billion rubles. The transaction was arranged using the mechanism of the Project Finance Factory, which is operated by VEB.RF. The first funds under the loan will be provided in February 2022.

For the entire loan period, a state subsidy is provided to compensate for the increase in the key rate of the Bank of Russia, and as part of the deal, VEB.RF will provide a tranche that can be used to pay interest at the investment stage of the project and partially to cover a possible increase in the project budget during its implementation.

Deputy Chairman of VEB.RF – Member of the Management Board Yury Korsun:

“The factory is a unique way to hedge the interest rate risks of borrowers and lenders, in which the amount of the subsidy is determined depending on the change in the key rate. After raising the key rate to 8.5 percent, all funded “factory” projects, including the Russian Platinum project, are already applying for state subsidies in 2022. Taking into account the number of ongoing and promising projects, we can say that the Factory tool has proven itself very well. We see the extreme demand for the tool in supporting the implementation of investment projects – a number of initiators have repeatedly applied to VEB.RF with a request to implement new projects using the Project Finance Factory.”

First Deputy President – Chairman of the Board of VTB Yuri Solovyov:

“VTB’s strategy is aimed, among other things, at supporting investment projects of great social and economic importance for the development of regions.

The construction of a mining and processing complex based on the Chernogorskoye deposit will play an important role in the further development of the Arctic zone of the Russian Federation. The signing of documents on long-term financing confirms the leading expertise of VTB Bank in the implementation of large-scale project financing transactions.”

General Director of Russian Platinum Evgeny Vorobeichik

“The development of the Chernogorsk deposit will mark the beginning of the creation of the second largest producer of palladium and platinum in Russia. The next stage of the project implementation involves the development of the southern part of the Norilsk-1 deposit and the construction of an enrichment complex on its basis. We are pleased to note the effective cooperation with our financial partners – VEB.RF and VTB in promoting this large-scale project aimed at supporting the socio-economic development of the Krasnoyarsk Territory, building up the potential of the domestic mining industry, and consolidating its strategic position in the global market for platinum group metals.”

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* Chernogorskaya GRK LLC is part of the Russian Platinum Group. The reserves of the Chernogorsk deposit accepted for development amount to 131 million tons of ore with a metal content of 4E (palladium, platinum, rhodium, gold). The design production capacity of the first stage of the Chernogorsky GOK is 7 million tons of ore per year, its final product is copper and nickel concentrate with a high content of palladium and platinum. When implementing the project, the best standards of the mining and metallurgical industry will be used

This press release was originally posted on the website of https://russian-platinum.ru/press/news?setlang=1