Bank VTB to issue $257mln credit for development of Teghut deposit in Armenia
10.12.2007,
18:59
The Bank VTB (Russia) is to allocate a $257mln credit for 12 years for the development of the Teghut copper and molybdenum deposit.
YEREVAN, December 10. /ARKA/. The Bank VTB (Russia) is to allocate a $257mln credit for 12 years for the development of the Teghut copper and molybdenum deposit. Board Chairman, Bank VTB, Andrey Kostin reported that the bank and the Armenian Copper Programme (ACP) signed a relevant agreement in Yerevan. RA Prime Minister Serge Sargsyan attended the signing ceremony.
“This is one of the bank’s large-scale investment transactions in Armenia in the post-Soviet area, as we view this project as most promising,” said Kostin.
According to him, this is a highly profitable investment project for the Bank VTB. Besides the credit margin the Bank VTB will receive part of the profit as offside from the cost of the shares, Kostin said.
In this context, he pointed out that the involvement in the development of the Teghut deposit will allow the bank to exercise corporate control over the enterprise.
“Since VTA’s share in the $350mln worth risk is of $250mln, we attach paramount importance to the presence of our staff members in the Board of Directors, which is envisaged in the Agreement as well,” Kostin said.
Chairman of the Central Bank of Armenia (CBA) Tigran Sargsyan stated that this is the largest-scale investment project in Armenia.
“We have not yet had such large-scale projects for the private sector through the banking system in our country,” he said.
Last Saturday, the Bank VTB and the ACP Company signed a cooperation agreement in Yerevan. The agreement envisages joint development of the Teghut copper and molybdenum deposit and the construction of an ore mining and processing enterprise in Armenia worth over $300mln, with the Bank VTB to act as organizer of project funding for the Teghut Company.
Still earlier, the VTB Group represented by VTB (France) organized pre-export funding of the supply of $15mln worth black copper for the ACP Company for a period of 36 months.
The Teghut deposit is the second largest deposit after the Kajaran mine in Armenia. The ore reserves in the Teghut deposit total 450mln tons, with the copper concentrate reserves totaling 1.6mln tons, and molybdenum concentrate reserves 99,000 tons. Experts say that the deposit can be exploited for 45 years, and the expected annual output being 7mln tons.
The ACP Company was licensed for 25-year development of the deposit.
The ACP Company, which forms part of the Vallex Group was incorporated in August 1997, using the facilities of the Alaverdi mining plant. Among the stockholders are Vallex F.M.
Establishment (Lichtenstein) (80.74%) and Director General of the ACP Company Valery Mejlumyan (19.26%). The enterprise specializes in copper and copper concentrate production. –0--
“This is one of the bank’s large-scale investment transactions in Armenia in the post-Soviet area, as we view this project as most promising,” said Kostin.
According to him, this is a highly profitable investment project for the Bank VTB. Besides the credit margin the Bank VTB will receive part of the profit as offside from the cost of the shares, Kostin said.
In this context, he pointed out that the involvement in the development of the Teghut deposit will allow the bank to exercise corporate control over the enterprise.
“Since VTA’s share in the $350mln worth risk is of $250mln, we attach paramount importance to the presence of our staff members in the Board of Directors, which is envisaged in the Agreement as well,” Kostin said.
Chairman of the Central Bank of Armenia (CBA) Tigran Sargsyan stated that this is the largest-scale investment project in Armenia.
“We have not yet had such large-scale projects for the private sector through the banking system in our country,” he said.
Last Saturday, the Bank VTB and the ACP Company signed a cooperation agreement in Yerevan. The agreement envisages joint development of the Teghut copper and molybdenum deposit and the construction of an ore mining and processing enterprise in Armenia worth over $300mln, with the Bank VTB to act as organizer of project funding for the Teghut Company.
Still earlier, the VTB Group represented by VTB (France) organized pre-export funding of the supply of $15mln worth black copper for the ACP Company for a period of 36 months.
The Teghut deposit is the second largest deposit after the Kajaran mine in Armenia. The ore reserves in the Teghut deposit total 450mln tons, with the copper concentrate reserves totaling 1.6mln tons, and molybdenum concentrate reserves 99,000 tons. Experts say that the deposit can be exploited for 45 years, and the expected annual output being 7mln tons.
The ACP Company was licensed for 25-year development of the deposit.
The ACP Company, which forms part of the Vallex Group was incorporated in August 1997, using the facilities of the Alaverdi mining plant. Among the stockholders are Vallex F.M.
Establishment (Lichtenstein) (80.74%) and Director General of the ACP Company Valery Mejlumyan (19.26%). The enterprise specializes in copper and copper concentrate production. –0--
