Russian mining company IRC (1029.HK), a listed subsidiary of Russian gold miner Petropavlovsk (POG.LSE), announced it has commissioned China National Electric Equipment Corp (CNEEC) to build a US$400 million iron ore processing plant, Bloomberg reported. The new plant will supply iron ore to the China market, and will have a production capacity of 3.22 million metric tons of ore concentrate by 2013, according to IRC’s statement. CNEEC’s construction of the plant will depend on US$340 million in project financing from the Industrial and Commercial Bank of China (601398.SH, 1398.HK) and cash obtained from IRC’s share sale in October, where it raised approximately US$241 million. Russia is increasing its commodity sales to China as demand in Europe slows, and has signed multiple agreements to facilitate exports of oil, natural gas and other key strategic commodities. IRC has said it wants to earn 30% of its revenues in Asia in the future.
Categories