Korbalikhinskoe is the largest of the currently developed zinc deposits in Russia, its reserves amount to about 24 million tons of ore with a high content of zinc, copper, lead, gold and silver.
VEB.RF, SberCIB and UMMC Group signed a syndicated loan agreement for the implementation of the project for the construction of the Korbalikhinsky polymetallic mine and the reconstruction of the Rubtsovskaya concentrating plant in order to increase the productivity to 1.5 million tons of ore per year. The deal is a continuation of the agreement on basic indicative financing terms, which was concluded in early 2020.
The total cost of the project for the development of the Korbalikhinskoye field is about 38 billion rubles, of which 15.8 billion rubles will be financed through credit funds of the syndicate participants within the framework of the Project Financing Factory, another 1.8 billion rubles - a reserve tranche. The loan funds will be used to finance costs within the project budget, including the purchase of equipment, payment for design and construction and installation work.
“This is the largest enterprise in the region for the extraction of polymetallic ores, VEB.RF as an operator The project finance factories not only selects investment projects for participation in the program, but is also one of the participants in the syndicate and acts as a loan manager. We certainly see the prospect of sales of products (zinc concentrate) sold within the framework of this project, both in the Russian and world markets. Moreover, the project will make it possible to replace existing third-party suppliers of raw materials, including foreign ones. Social aspects are also fundamentally important for us, for example, the creation of new highly qualified jobs, ”noted Deputy Chairman of VEB.RF Yuri Korsun.
The project for the development of the Korbalikhinskoye deposit is being implemented with the aim of long-term provision of the zinc division of the UMMC with its own raw materials. At the same time, the reconstruction of the Rubtsovskaya concentrator is being carried out to increase the volume of ore processing.
“We are pleased to participate in financing the development of the country's largest polymetallic deposit, which will help Russia maintain its leading position in the non-ferrous metals market, as well as create new jobs will contribute to the development of innovative technologies in the mining industry. SberCIB provides the UMMC Group with financing in the amount of RUB 13.7 billion for up to 8 years at a floating rate pegged to the key rate of the Bank of Russia, which, taking into account the conditions within the VEB.RF Project Financing Factory, will allow the client to obtain the most favorable financing terms " - said Olga Kharlamova, Vice President of Sberbank, Director of the Key Clients Lending Department.
The Korbalikhinskoye polymetallic deposit, the largest of the currently developed zinc deposits in Russia, is located in the Zmeinogorsk region of the Altai Territory. Its reserves amount to about 24 million tons of ore with a high zinc content, as well as copper, lead, gold and silver.
“UMMC considers the transaction as a“ pilot ”within the framework of the Project Finance Factory in order to further distribute experience gained in lending to others, including larger investment projects. I would like to thank the participating banks for the implementation of such, albeit a long, but unique project for the UMMC Group. The implemented structure of project financing assumes not only reasonable and comfortable mechanisms for the borrower to control the project implementation on the part of the syndicate participants, but also provides very interesting tools to reduce risks for the UMMC Group. In addition to the participation of a specialized technical consultant, this project provides for the implementation of a comprehensive risk insurance program, as well as the use of instruments to hedge the risks of deterioration in the state of financial markets "- commented the General Director of UMMC, Andrey Kozitsyn.
Ural Mining and Metallurgical Company is a Russian mining and metallurgical holding, the largest producer of copper, zinc, coal and precious metals in the country, uniting more than 40 industrial enterprises in Russia and abroad.
SberCIB is a dedicated business segment as part of the bank's corporate and investment block, which works with major clients. This line of business provides