CDB provides $1.43 billion loan for Taishet Aluminum Plant Construction Project

On June 5, 2012, China Development Bank (CDB) and Vnesheconombank (VEB) — a Russian government-owned development bank — signed a $1.43 billion loan agreement for the Taishet Aluminum Plant Construction Project. The loan has a maturity length of 15 years (maturity date: 2026). The interest rate and grace period of the loan are unknown. Vnesheconombank used the proceeds of this loan to on-lend to a special purpose vehicle called LLC RUSAL Taishet (also known as LLC “RUSAL Taishet Aluminum Plant” or ООО РУСАЛ ТАЙШЕТСКИЙ АЛЮМИНИЕВЫЙ ЗАВОД in Russian), which is a wholly owned subsidiary of United Company RUSAL that is responsible for the construction and operation of an aluminum plant in the city of Taishet and the region of Irkutsk. The aluminum plant was designed to have an initial capacity of 375,000 tons a year in its ‘first stage’ and eventually a total capacity of 750,000 tons a year. United Company RUSAL (UC RUSAL or МКПАО «ОК РУСАЛ» in Russian) is the contractor responsible for implementation. It is an international public joint-stock company and the world's second largest aluminum company by primary production output. Construction began on or around May 15, 2008, but was suspended a year later due to the global financial crisis. Construction was supposed to resume in 2010, but as of June 2011, construction had still not resumed. Construction eventually resumed in May 2016. Then, in September 2018, the plant’s opening date was postponed until 2020 due to U.S. sanctions that were imposed on Rusal. Since 2006, 92 objects of main and auxiliary production have been built; a mobile concrete plant has been put into operation; a temporary production base, a construction headquarters, a shift camp have been erected; and more than 60% of the main technological equipment has been contracted and delivered to the construction site. Equipment for electrolysis and foundry production, modern gas purification plants, transformers, process cranes, lines for anode assembly have been partially supplied. The construction of a warehouse and a fire station has been completed. This project is ultimately expected to create 3000 jobs. As of December 12, 2021, Rusal had put into operation the first stage of the Taishet aluminum shelter.

Additional details

1. The Russian project title is тайшетский алюминиевый завод or Строительство Тайшетского алюминиевого завода. 2. While media sources report that the CDB loan agreement was signed as early as 2011, a VEB Bond Prospectus and 2012 Annual Report indicate that it was signed in 2012.

Number of official sources

8

Number of total sources

20