En+ Group and Export-Import Bank of China sign $5bln cooperation agreement
En+ Group, a leading Russian diversified mining, metals and energy group, and Export-Import Bank of China (China Eximbank), one of the largest international lenders, signed today an agreement on financing the development of mining and power projects in Eastern Siberia. The Agreement was inked by Artem Volynets, CEO of En+ Group, and Li Ruogu, Chairman and President of China Eximbank, witnessed by the President of the Russian Federation Dmitry Medvedev and the President of the People’s Republic of China Hu Jintao.
The agreement stipulates China Eximbank will provide funding for the construction of power generation plants, development of coal fields as well as iron ore and copper concentrate projects in Eastern Siberia pursued by the companies of En+ Group: EuroSibEnergo, Tuva Mining Company and SMR specifically. The funding of up to US$5bln will be provided on a project finance basis.
The projects include the construction of thermal and hydro power generation plants in Eastern Siberia with the total installed capacity of over 3GW, the development of coal field projects in the Republic of Tuva and the development of Chinea polymetal deposit in the Zabaikalye Territory. It is expected that a big portion of the output of new projects will be supplied to the Asian markets given the long-term growing demand for commodities in Asia.
En+ will seek to involve Chinese equipment and service providers in order to achieve greater cost and operational efficiency and advanced technology transfer. China Eximbank will also assist En+ Group in sourcing additional funding from Chinese commercial banks by way of syndicated loans if required.
“The agreement will significantly strengthen cooperation between Russia and China and be a milestone in the large-scale development of Eastern Siberia. At En+ Group we believe that Eastern Siberia has the potential to become a major reliable supplier of commodities to the rapidly growing Asian markets given the geographical proximity and abundant resources. This will boost the development of the region and triple Siberia GDP within next 15 years and become one of the key drivers of the Russia’s economy growth for decades to come” - commented Artem Volynets, CEO of En+ Group.
“China Eximbank is delighted to have partnered with En+ Group in these important projects and to have provided the financing necessary to assist in the development in Eastern Siberia,” commented Li Ruogu, Chairman and President of the bank. “The agreement that has been forged between our businesses is a further example of the strong ties that exist between our countries, and provide further optimism for the potential for Sino-Russian cooperation in the areas of trade and economic development. The agreement also highlights our confidence in En+ Group’s capability to build and manage world-class mining and power projects in the region, which will deliver energy to drive the economic advancement of the Russian and Asian markets, Li Ruogu added.
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