Sinosteel to take part in manganese project in Siberia; Exim Bank to provide 3.9 bln yuan
MOSCOW. May 8 (Interfax) - Sinosteel, one of the biggest metal trading companies in China, may take part in the project to develop the Usinskoye manganese ore deposit in Kemerovo region.
The license to the deposit is held by CJSC Chek-Su.VK, whose president, Georgy Ramzaitsev, signed a contract with Sinosteel board chairman Xu Siwei to implement a project "to produce electrolytic manganese metal using ore from the Usinskoye deposit to make special steels." The contract was signed in conjunction with Chinese President Xi Jinping's visit to Russia.
In parallel, Vnesheconombank Chairman Vladimir Dmitriev and China Exim Bank board chairman Hu Xiaolian signed a framework agreement on cooperation in the electrolytic manganese project.
Under that document, China Exim Bank will provide 3.9 billion yuan ($628 million) to VEB for a 15-year term, the Russian bank said. The agreement is aimed at financing Chek-Su.VK's investment project.
The JORC mineral resource at Usinskoye totals 32.856 million tonnes of ore with 21% manganese content. The ore reserves are 30.908 million tonnes with 21% manganese content.
Chek-Su.VK obtained the license to Usinskoye in 2005. The license is valid until 2025 with an option to extend. In 2011 the computerized modeling of the field was completed and the company is currently preparing to begin development.
