China Eximbank provides RMB 5.383 billion loan for Bystrinsky Copper Mining and Enrichment Plant (Linked to Project ID#66369, #95878, and #95879)

In July 2015, Vnesheconombank (VEB) Supervisory Board announced that it had approved an RMB 5,383,000,000 ($874 million) China Eximbank loan to GRK Bystrinskoye LLC — a special purpose vehicle and joint venture of PJSC MMC Norilsk Nickel (50.51% ownership stake), CIS Natural Resources Fund (36.6% ownership stake) and Highland Fund (13.3% ownership stake) — in the Bystrinsky Copper Mining and Enrichment Plant Project. Then, on September 2, 2015, China Eximbank and VEB signed an MOU on the project. The loan carried an 8-year maturity and an unknown interest rate. The borrower was expected to use the proceeds of the loan to partially finance the $1.378 billion project. The project consisted of an open-pit mine at the Bystrinskoye deposit; a mining and processing plant (MPP) with all associated infrastructure, including a power line and the 227 km Borzya–Gazimursky Zavod railway line; as well as a rotation camp. Upon completion, the mining and enrichment plant was expected to have the capacity to process 10 million tons of ore per year to produce copper, gold and magnetite concentrates. Construction of the open-pit mine and the MPP started in 2013. In 2017, a 220 kV power line was commissioned and a camp for 1,047 people was built. Hot commissioning of the MPP started in October 2017. Then, in in May 2018, the mine shipped its first consignment of 680 tons of iron ore to China. At that point, the mine was running in pre-commissioning mode. The MPP came online in December 2019. The project was expected to ramp up to design capacity by 2021.

Additional details

1. The Bystrinksy field has reserves of 2.1 million tons of copper and 7.5 million ounces of gold. 2. Highland Fund is a consortium of Chinese investment funds and corporations. It purchased a 13.3% ownership stake in the Bystrinsky Copper Mine for $100 million (as captured via Project ID#67572). 3. As of March 2021, the key shareholders of PJSC MMC Norilsk Nickel were Vladimir Potanin's Olderfrey Holdings Ltd (34.59%) and Oleg Deripaska's Rusal (27.82%). 4. The Chinese project title is 俄罗斯Norilsk镍业旗下铜矿项目 or 俄罗斯矿业项目 or 西伯利亚东部的Bystrinsky的铜矿项目.

Number of official sources

10

Number of total sources

17