News

June 18, 2012

The MBC corporation and China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd. entered into a framework agreement.

The signing ceremony took place in Moscow on April 28, 2012 in the framework of Russian-Chinese trade and investment forum in the presence of First Deputy chairman of the government of the Russian Federation Igor Shuvalov and Deputy Prime Minister of the State Council of China Wu Yi Li Keqiang. On the Russian part the agreement was signed by General Director MBC Corporation Ilya Okhtyrskiy, and from the Chinese part - by the CEO of NFC Van Huntsyan.

The document stipulates that the Chinese partner will participate in the industrial development of Ozernoye complex deposit located in the Republic of Buryatia and in the construction of Ozerny GOK. In accordance with agreement NFC shall purchase a 50% share in Ozerny project. The companies will further enter into an integrated contract to manage the design, procurement and construction of the Ozerny GOK (the so-called EPCM contract), as well as a contract for the supply of marketable products of the Ozerny GOK. In addition, NFC will arrange debt financing construction.

Background:
The Ozerny GOK that will be capable of turning out 8 million tons of ore per year is being constructed by ESM Corporation, a member of the METROPOL Group of Companies in the Republic of Buryatia on the basis of reserves of Ozerny deposit evaluated in the amount of 157 million tons in accordance with JORC Code. The content of metals in the ore is 5,2% Zn and 1% Pb. In addition, the ore from the Ozerny deposit contains silver in the scope of 4.5 thousand tons. In October 2010, a mining facility with the capacity of 1 million tonnes of ore per year was commissioned on the site, and in 2011. the first batch of ore was mined. Currently, the construction of a pilot enrichment plant is under way.

Chinese company China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC) is mainly engaged in international contracts for the design and construction of industrial facilities, as well as the development of mineral resources of ferrous metals. The company's activities include the entire cycle of design, technical consultancy, supply, installation and start-up of processing equipment, staff training, etc. NFC carried out its projects in the Middle East, Africa, Southeast Asia and CIS. The company has been several time included onto the lists "225 most powerful international contractors" and "200 most powerful international designers" according to the estimates of ENR, a reputable international publishing house that specializes in engineering.

The General Director of MBC Corporation Ilya Okhtyrskiy (left) and General Director of NFC (China) Wang Huntsyan after signing the framework agreement