Russian mining and steel group Mechel has announced that it has received the $150 million first tranche of project financing for the Elga Coal Complex's first stage from Russian state-owned Vnesheconombank. The total financing for the first stage will amount to $2.5 billion.
The development of the rich Elga deposit is a key investment project for Mechel. Receiving these funds enables the company to continue working on this project regardless of market volatility and to attain planned results as scheduled.
The loan has a tenor of 13.5 years with a grace period until 2017. According to the transaction's conditions, the funds from Vnesheconombank will be used to complete construction of Elga Coal Complex's first stage, which includes construction of a railroad and a mining and washing complex with an annual capacity of 11.7 million mt of run-of-mine coal by 2017.