China Aluminium Network
China bank to invest $1.43 bln in Russian smelter-VEB
Edited by : AL CIRCLE
2 min read
Russian state bank VEB will sign a deal with China Development Bank (CDB) under which CDB will provide $1.43 billion for building the first stage of UC RUSAL's 750,000-tonne Taishet aluminium smelter, VEB head Vladimir Dmitriev said.
The deal, to be signed on Tuesday during a visit by Prime Minister Vladimir Putin, will ease financing concerns on the Russian side and seek to address supply constraints in China, a high-cost producer that is not self-sufficient in aluminium.
"It is easier for us to estimate risks this way," Dmitriev told reporters in Beijing, commenting on the Chinese loan.
At the end of September VEB's National Council approved project financing for Taishet of 40 billion roubles ($1.27 billion).
Hong Kong-listed RUSAL, the world's largest aluminium producer, confirmed that agreement on the project financing had been reached with VEB and it was not worried about the source of the money.
"The sources of VEB's funding have no influence on the agreement," RUSAL said in an e-mailed comment.
Construction of the Taishet smelter, located in the Irkutsk region, started in 2007. It was mothballed in 2008 due to the global economic and financial crisis, which forced RUSAL into a debt restructuring, and is expected to restart this year.
Its first stage is expected to have a capacity of 375,000 tonnes per year, but it is not yet clear when it will enter operation.
The deal, to be signed on Tuesday during a visit by Prime Minister Vladimir Putin, will ease financing concerns on the Russian side and seek to address supply constraints in China, a high-cost producer that is not self-sufficient in aluminium.
"It is easier for us to estimate risks this way," Dmitriev told reporters in Beijing, commenting on the Chinese loan.
At the end of September VEB's National Council approved project financing for Taishet of 40 billion roubles ($1.27 billion).
Hong Kong-listed RUSAL, the world's largest aluminium producer, confirmed that agreement on the project financing had been reached with VEB and it was not worried about the source of the money.
"The sources of VEB's funding have no influence on the agreement," RUSAL said in an e-mailed comment.
Construction of the Taishet smelter, located in the Irkutsk region, started in 2007. It was mothballed in 2008 due to the global economic and financial crisis, which forced RUSAL into a debt restructuring, and is expected to restart this year.
Its first stage is expected to have a capacity of 375,000 tonnes per year, but it is not yet clear when it will enter operation.
Previous article
SMM Brief Review - 2011/10/10 SHFE Aluminum Futures
Next articleUAE aluminium giants eye Turkish growth
Grow with
AL Circle
