21 December 2016
VTB Group and Russian Platinum have signed a memorandum on strategic partnership for the development of the deposits at Chernogorskoye and the southern sector of Norilsk-1.
Under the memorandum, VTB Group will be able to buy a stake in the project and will act as Russian Platinum’s financial consultant for attracting international investors. The agreement also details joint efforts to attract project financing from VTB Group and other lending organisations for the deposits’ development.
Andrey Kostin, President and Chairman of VTB Bank Management Board, said that involvement in this project is an attractive long-term financial investment for the group. The Russian Platinum project is one of the most profitable in the sector thanks to high economic efficiency due to the low production costs and the stable market demand for platinum metals. VTB Group plans to extend financing for the project on optimal terms, we are already seeing interest from large Russian and international investors toward the project and are confident that the partnership with Russian Platinum has significant development potential.
Musa Bazhayev, Chairman of the Board at Russian Platinum, said: "Our development project provides for building a large mining and processing plant with cutting-edge equipment and adhering to the best environmental standards, which will be one of the global leaders in terms of efficiency. This project will enhance Russia’s position in the global platinum market, creating a multi-billion revenue stream for regional federal budgets and thousands of new jobs in the Krasnoyarsk Territory. We believe this strategic partnership with VTB Group will significantly enhance our financial opportunities and help us implement this project in a timely manner."
The Russian Platinum project in the Norilsk industrial region, Krasnoyarsk Territory, is developing the Chernogorskoye copper-nickel deposit and the southern part of the Norilsk-1 deposit. The combined reserves of the Chernogorskoye deposit — platinum, palladium, rhodium, gold (4E metals) — are estimated at 20.5 million ounces (Moz), and resources at 22.6 Moz. The 4E reserves at Norilsk-1 have been estimated at 92 Moz and resources at 127.9 Moz. The company’s project in the Norilsk industrial region is considered the world’s third largest in terms of tapped 4E reserves.
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