VTB to be Rostec's financial partner on tungsten project in North Caucasus
NALCHIK. June 15 (Interfax) - State bank VTB will act as Rostec's partner in the construction of a mine and processing plant as part of a project to resume tungsten and molybdenum ore mining and processing at the Tyrnyauz deposit in Kabardino-Balkaria, Russia's largest tungsten deposit, the state corporation said.
Rostec and VTB signed an agreement on strategic partnership in various areas, including the use of financial instruments, at the St. Petersburg International Economic Forum.
"The project to build the Tyrnyauz mine and processing plant is strategically important. This will be a modern, high-tech and environmentally safe enterprise with a complete production cycle with total capacity of 1.5 million tonnes of ore per year," Rostec deputy CEO Dmitry Lelikov was quoted as saying by the company's press service.
He said Rostec and VTB joining forces will make it possible to "solve one of the priority problems for Russian industry."
VTB management board chairman Valery Lukyanenko said that, in the current geopolitical environment, creating modern products and innovative solutions for the Russian economy is becoming the key focus for the development of businesses in high-tech sectors of industry.
The project to revive tungsten and molybdenum ore mining and processing at the Tyrnyauz deposit that is being carried out in Kabardino-Balkaria and Stavropol Territory calls for capital expenditures of about 55 billion rubles. Ore will be mined and processed at the complex in Tyrnyauz (Kabardino-Balkaria) and concentrate from the complex will be processed at a hydrometallurgical plant in Nevinnomyssk (Stavropol Territory). The project will create 800 jobs at both operations.
The complex in Tyrnyauz will be built by Rostec subsidiary Elbrus Mining and Processing Plant LLC (EGRK), with the support of Russia's Economic Development Ministry under an investment protection and promotion agreement signed with EGRK. Investment in this project, which includes an underground mine and processing plant, will exceed 40 billion rubles.
The project is expected to fully meet the Russian market's demand for tungsten raw materials.
As part of the implementation of the project, the government of Kabardino-Balkaria and Rostec approved a roadmap and EGRK was established. The company acquired the license to develop the Tyrnyauz deposit for over 1 billion rubles and bought out the mine workings and infrastructure owned by state company Tyrnyauz Tungsten-Molybdenum Combine.
Tyrnyauz is one of the largest tungsten deposits in the world and holds almost 37% of Russia's explored tungsten reserves. The mine, which opened in 1940 and was the main local employer, ceased operations in the early 2000s.
