The board of directors of Russian hydropower giant RusHydro have approved the company’s $319.5 million participation in the long-running construction of the Taishet smelter of aluminum giant UC Rusal, RusHydro said in a statement on April 5.
“The cost of RusHydro’s participation in the project stands at no more than $319.5 million (RusHydro’s stake in the project amounts to 50%), and the price of the 50% stake in the charter capital of joint venture Rusal Taishet is no more than $169.5 million,” the company said.
The board also approved additional conditions for participation in the project, the company said.
Construction of the Taishet aluminum smelter began in 2006 but was suspended in 2009. Rusal plans to attract project financing amounting to about $700 million to complete it. RusHydro set seven conditions for participation in August 2017, including a requirement that half of the project should not cost over $388 million.
The list of the conditions also included the possibility for the company to pay for the stake with 42.75% in Irkutsk Power Grid Company and further income from the plant amounting to no more than $150 million. The company also wanted to pay the remaining part of the cost of $88 million in installments during no less than the three years following the plant’s launch. (Prime/Ukrainian metal)