China Eximbank provides $500 million loan for development of northwestern block of the Elginskoye Coal Deposit in the Republic of Sakha (Yakutia) (Linked to Project ID#66587)

On May 20, 2014, Russia's State Corporation Bank for Development & Foreign Economic Affairs — also known as Vnesheconombank (VEB) — signed a $500 million loan agreement with China Eximbank for the development of the northwestern block of the Elginskoye Coal Deposit in the Republic of Sakha (Yakutia). The borrowing terms of the loan are unknown. However, it is known that the proceeds of the loan were to be used by the borrower to facilitate the import of equipment that to develop the Elginskoye Coal Deposit. No project implementation information could be identified as of March 2022. Elginskoye (or Elga) coal mine is a surface coal mine, operated by Mechel and Gazprombank AO, producing 4.3 million tonnes per annum, in southeast Sakha Republic, Russia. It is located in a remote area 415 km east of Neryungri, in Neryungrinsky District, Sakha Republic, Russia. The mine is connected via dirt mining roads to the railway network at Ulak, in Amur Oblast, 210 km away. On the same day, China EXIM Bank and VEB-Leasing (a subsidiary of VEB) signed another loan agreement for $300 million for similar purposes (see project #66587).

Additional details

1. This loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in 2020. 2. The Russian project title is Эльгинское угольное месторождение. 3. Several sources suggest that the $500 million loan from China Eximbank was part of a larger $2.5 billion loan that Vnesheconombank issued to Mechel in September 2013. This issue warrants further investigation.

Number of official sources

6

Number of total sources

22