Overview

CDB, NFC, MBC signs agreement for NFC to acquire 50% of Ozernoe Zinc Deposit

Commitment Year•2013Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Mar 22, 2013

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

China Development Bank (CDB)

Receiving agencies

Private Sector

MBC Corporation LLC

Implementing agencies

State-owned companies

China Nonferrous Metal Mining (Group) Co., Ltd. (CNMC)

Loan desecription

CDB, NFC, MBC signs agreement for NFC to acquire 50% of Ozernoe Zinc Deposit

Interest type•Unknown

Narrative

Full Description

Project narrative

On March 22, 2013, the China Development Bank, China Nonferrous Metal Industry's (NFC), and Russian MBC Corporation signed an agreement for NFC to acquire 50% of the Ozernoe Zinc deposit in Eastern Siberia. The exact system of financing is unclear, especially in regards CDB's role, which has been described by media outlets as having the "possibility of financing the construction." Various estimates for the project place the cost between $1.1 billion and $1.5 billion, but do not specify the amount of NFC's investment. The Ozernoe deposit is located in the Republic of Buryatia. The deposit has a reserve balance of 1156 MT of ore with 5.2% Zinc and 1% PB and 3.5 thousand tons of silver.