29
March
2005
IFC METROPOL and leading Chinese mining companies sign agreement on cooperation in developing polymetallic ore deposits
Investment financial company METROPOL, Shui Kou
Shan Nonferrous Metals Group Ltd. and Taizhou Huatian Industry Co.
Ltd., two of China’s major mining companies, held negotiations on
mutually beneficial cooperation.
The parties agreed to implement the program,
which is aimed at enhancing Russia-China relations and boosting the
economic growth of the companies that took part in the
negotiations.
The agreement paves the way for the construction
of mining facilities at the Ozernoye deposit in the Republic of
Buryatia. The facilities may be built on the following terms: The
Russian party will carry out engineering works, obtain approvals
from Russian state authorities, construct a mining plant with a
capacity of 2 mn tons per year, a preparation plant, a tailings
pond and necessary infrastructure and will deal with issues related
to transportation of products. The Chinese party will provide a
credit line (untied loan) to finance these activities.
“Signing an agreement on mutually beneficial
cooperation with Chinese companies is extremely important for the
development of the Russian mining industry”, says IFC METROPOL
General Director Mikhail Slipenchuk. “Financing will facilitate the
construction of Russian enterprises and allow for the creation of
new jobs for residents of Buryatia. Supply of concentrate, not ore,
to the Russian domestic market is a new approach to cooperation
with international companies which is important to Russian economy.
As part of the development of the mining industry of the Republic
of Buryatia, and if international cooperation is secured, we are
negotiating cooperation with leading Russian financial institutions
and production enterprises, European engineers and equipment
suppliers.”
Within one month since the day of the signing of
the protocol the Russian party will prepare a detailed offer that
will include: The amount of capital required; The procedure to
repay the loan; Forms of financial security of the loan until the
repayment.
About Ozernoye polymetallic ore
deposit
The Ozernoye deposit is one of the world’s
largest deposits in terms of zinc reserves confirmed in the amount
of 128.16 mn tons of ore. Ore is comprised of 7% zinc. The average
content of silver is 37,6 g/t, lead - 1,25%, sulfur - 20,82%,
cadmium - 0,017%.
About IFC METROPOL
Investment financial company METROPOL, one of
Russia’s leading investment companies, constitutes part of the
METROPOL Group of Companies. IFC METROPOL has operated in the
Russian stock market since 1995.
Among the company’s core businesses are
transactions in the stock market and Russian and leading
international exchanges, investment services, financial consulting
and industrial investments.
The Company was rated in the 5th place with a
turnover of $432 mn in 2004, in the RTS classical market. IFC
METROPOL has an office in London, Metropol UK Limited, a licensed
member of the London Stock Exchange, and a branch in Japan (Tokyo).
The Company obtains the AA rating (very high level of reliability)
from the National Association of Stock Market Participants
(NAUFOR). The Depository holds the AA rating (very high level of
reliability) from PARTAD.
IFC METROPOL owns METROPOL Asset Management and
a controlling stake in commercial bank OBIBANK.
Mikhail Slipenchuk, IFC METROPOL General
Director, was awarded the 2005 annual national prize, “The Person
of the Year” for “Attraction of Investments in the Real Sector of
Economy.”
About Shui Kou Shan Nonferrous Metals Group
Ltd.
Shui Kou Shan Nonferrous Metals Group Ltd. is
one of China’s leading mining and processing companies. The company
was set up in 1896 in Hengyang City (Hunan Province). The company
organized Shuikoushan Mines Bureau, a large-scale metallurgic
enterprise which produces ore, presses and melts it. Shuikoushan
mainly produces copper, lead and zinc. The company’s production and
treatment capability amounts to 600 000 tons of ore a year, melting
capability equals about 200 000 tons a year.
