Mechel, one of the leading Russian mining and steel groups, has announced that project company Elgaugol, which is part of Mechel Group, and State Corporation Vnesheconombank have signed agreements for the second and third credit lines of project financing for developing Elga Coal Complex's first phase.
The second credit line, totaling $2.085 billion, will be used to finance construction of Elga Coal Complex's facilities until the complex's coal mining and processing capacity reaches 11.7 million mt of run-of-mine coal a year, as well as completion of works aimed at increasing the Ulak-Elga railway's capacity.
The third credit line totaling $418.7 million will be used to fund expenses on paying Vnesheconombank's interest and fees for the second credit line until Elga Coal Complex's first-phase facilities are launched, as well as to repay the $150 million bridge loan - the first credit line granted Elgaugol in October 2013.