Acron has found funding for its potash project

Vnesheconombank Supervisory Board at its meeting has approved a syndicated financing deal for the Acron Group project to develop the Talitsky area of the Verkhnekamsk potassium-magnesium salts deposit in Perm Krai.

“The projects we are talking about contribute to solving the problem of increasing non-resource non-energy exports. Today we will discuss VEB’s participation in the development of the Talitsky area of the Verkhnekamsk potassium-magnesium salts deposit. The construction of ore mining capacities and the creation of an enrichment complex are envisaged. Commissioning is scheduled for 2023, reaching full capacity should take place in 2026. As a result, 2.3 thousand new jobs will be created in the Perm Krai,” said Dmitry Medvedev, Chairman of the VEB Supervisory Board and the Prime Minister of Russia, in his opening remarks.

The total capital budget of the project is $ 2.6 billion (including previously incurred expenses and value-added tax). The required amount of financing with borrowed funds is $ 1.450 billion, including $ 1.170 billion from Gazprombank, Bank Otkritie, Sberbank and VTB, and VEB will finance $ 280 million.

In addition, VEB provides a reserve tranche of $ 360 million, which can be used for interest payments and in case of the possible project cost overrun. A syndicated loan for up to 13 years will be provided to finance the investment costs of the project.

The loans will be used to finance the completion of vertical shaft sinking, the construction of an enrichment plant and the related infrastructure.

The Talitsky area is located on the eastern border of the southern part of the Verkhnekamsk potassium-magnesium salt deposit in Perm Krai. The maximum width of the site is 12.1 km, and it is 10.6 km long with the total area of more than 69 square kilometres. A detailed geological exploration of the site was carried out in 1968. The balance reserves of salts (of A + B + C1 categories) are 726 million tons. The average useful substance (potassium chloride) content in the ore is 31%.