CDB provides RMB 50 million loan for Lao Kaiyuan Potash Mine Project (Linked to Project ID#64228, #64227)

On December 29, 2011, China Development Bank (CDB) and Lao Kaiyuan Mining Co., Ltd. signed a $121.5 loan agreement (ID#5110201101100000033) for the Lao Kaiyuan Potash Mine Project (captured in Project ID#64228). The term of this USD-denominated loan is from December 29, 2011 to December 30, 2023. The loan carries an interest rate of 6-month LIBOR (0.78% in December 2011) plus a 4.2% margin (or 4.98%). Then, on August 2, 2012, China Development Bank and Lao Kaiyuan Mining Co., Ltd. signed a supplementary loan agreement (ID#5110201201100000203) worth RMB 50 million for the Lao Kaiyuan Potash Mine Project (captured in Project ID#64269). This RMB-denominated loan carries an interest rate equivalent to the benchmark RMB interest rate in the loan commitment year (6.56% in 2011). Qingdao East Steel Tower (东方铁塔) issued guarantees for both loans. The purpose of the project was to build a mine in Thakhek district and Khammouane Province with the capacity to produce 500,000 tons of potassium chloride each year. The project commenced in January 2011 and was completed in 2013.

Additional details

1. This project is linked to a $20 million loan pledge from China Eximbank (captured in Project ID#64227) for the Lao Kaiyuan Potash Mine Project. 2. Lao Kaiyuan Mining Co., Ltd. is a 100% Chinese owned enterprise with mining operations located in Khammouane Province, Lao PDR. The company is currently developing Asia’s largest potash mine in terms of proved and probable potash reserves. The company is a subsidiary of Kaiyuan Potash Group Limited, a Hong Kong registered entity.

Number of official sources

6

Number of total sources

12