Eurasian Development Bank (EDB) and the Industrial Metallurgical Holding (IMH) signed a loan agreement to boost iron ore outputs. The document was signed by Konstantin Limitovsky, Deputy Chairman of the Management Board at EDB, and Evgeny Zubitskiy, President of IMH.
In accordance with the agreement, EDB will provide $90 million to IMH for eight years. The borrower in the transaction is Kombinat KMAruda and the guarantors are Koks and Tulachermet. The facility will finance a project to enhance iron ore outputs with the reserves from the lower levels of KMAruda’s Korobki deposit.
The project envisions constructing a mine to increase KMAruda’s yearly output from the current 4.6 to 7 million tons of iron ore. Production at the lower levels of the Gubkin mine (at the depth of 250 m) is planned to begin in late 2019 or early 2020 and is expected to reach the designed output by 2022. KMAruda’s iron ore reserves total 356 million tons and are sufficient to meet IMH’s demand for this stock for more than fifty years. (MetalInfo/Ukrainian metal)