Russia’s VEB to give $874 mln for Norilsk Nickel deposit

MOSCOW, Jul 16 (PRIME) -- The supervisory board of Russia’s Vnesheconombank (VEB) will grant Norilsk Nickel a yuan-denominated credit equivalent to U.S. $874 million to develop a $1.378 billion Bystrinsky deposit in the Far East, as seen by PRIME on Thursday in materials for the board’s meeting.

VEB has worked on financing from China, as Chinese customers will be the main consumers of the deposit rich in copper, iron and gold.

The project envisages the construction of an ore mining and dressing plant on the field, as well as transport and engineering infrastructure. Previously, Norilsk Nickel also held talks with VTB Bank on attracting $1 billion for project financing, but the loan will be a mid-term one, while VEB’s financing is long-term.

The company also plans to provide VTB with an option of buying up to 25% in the project, with an Asian investor possibly buying another minority stake in the project.

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