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Bank Otkritie to finance major UMMC project for the eco-friendly production of blister copper

Bank Otkritie to finance major UMMC project for the eco-friendly production of blister copper

A RUB 12.8 billion, 8-year credit line is to be provided to JSC Svyatogor, a subsidiary of the Ural Mining and Metallurgical Company Group (UMMC), one of the largest mining and metallurgical companies in Russia. The financing from Otkritie Bank will be used for the modernization of the company’s blister copper production facilities to enable them to use state-of-the-art ”green” technologies from Ausmelt.

With a production capacity of about 80 thousand tonnes per year, Svyatogor carries out every stage in the production of blister copper. The credit line from Otkritie Bank will enable the company to use Ausmelt’s advanced technologies in the areas of energy consumption and environmental safety. Ausmelt’s method of smelting minimises the harmful impact of production on the environment by recycling all of the process gases produced. The use of this method will help bring copper production in the region into line with the most advanced global standards while, at the same time, increasing production capacity to 110 thousand tonnes per year.

The project has received state support in the form of a subsidy to offset the borrowing costs as part of the national project “Ecology” in line with the terms of the Russian Government Decree No. 541.

Ekaterina Chirkova, Senior Vice President and Head of Customer Relations at Otkritie Bank, said:

“We are grateful to UMMC Group for choosing Otkritie as its financial partner and for the effective cooperation we’ve experienced at every stage of the transaction. Implementation of the project was made possible with the direct support from the Government of the Russian Federation as part of the first selection under the Government Decree No. 541. Modernisation of Svyatogor’s production site will undoubtedly help improve the environmental situation in the region, which is a priority both for everyone participating in the project and for the people of the region.”

Andrey Kozitsyn, CEO of UMMC, said:

“UMMC Group is committed to the people working and living in the cities where our production sites operate. For us, this project is another important stage in the implementation of our ESG policy. I would like to express my gratitude to the Otkritie team for their excellent professionalism and support for the project in the context of the Government Decree No. 541 on the incorporation of the best available technologies. We highly appreciate the interest of our partner, Otkritie Bank, in our projects that play a significant role in the development of the economy and the life of the regions where we operate.”

Otkritie Bank is on the Bank of Russia’s list of systemically important financial institutions. Otkritie is a classic universal bank, engaging in corporate, investment, retail, SME and private banking. The Bank’s subsidiaries are leaders in key segments of the financial market: the insurance companies Rosgosstrakh and Rosgosstrakh Life, Otkritie Broker, Otkritie Management Company, the Otkritie pension fund, JSC Baltic Leasing, LLC Open Leasing, LLC Otkritie Factoring, RGS Bank and JSC Customs Card. The Bank’s creditworthiness has been affirmed by the Russian ratings agencies ACRA (АА(RU)), Expert RA (ruAA) and NCR (АA+.ru) as well as the international agencies Fitch (BB+) and Moody’s (Ba2). The Bank’s development strategy calls for improvements in the speed and quality of customer service as well as the implementation of advanced fintech ideas.

The Ural Mining and Metallurgical Company (UMMC) is a Russian mining and metallurgical holding and the largest producer of copper, zinc, coal and precious metals in the country, uniting more than 40 industrial enterprises in Russia and abroad.