VEB won't be minority shareholder in Elga coal project - Mechel
MOSCOW. April 16 (Interfax) - The terms on which Vnesheconombank (VEB) might provide funding for Mechel to develop the Elga coal field in Yakutia do not envisage the bank becoming a minority shareholder in the project.
"We're not looking at selling a minority stake in Elga, and the issue is not about the bank participating in the project's economics," Mechel's CFO, Stanislav Ploschenko, said on a conference call.
At the same time it's too soon to talk about the collateral structure as the parties have not yet got round to structuring the deal, he said.
Mechel is looking to sell up to 25% of its Mechel Mining subsidiary, partly to finance the Elga project. Ploschenko said there would be no need to look for an investor if VEB provides a loan and that the group could then negotiate with potential buyers of a stake in the project on a more confident footing.