Silvinit Shares Grew On Sberbank Credit Line

27.10.2009 — News

THE PERM KRAI.

The Sberbank's decision to open a five year credit line for JSC Silvinit has caused the company's shares to go up 2.5% on MICEX. 1 billion 515 million US dollars will be used for the refinancing of short term liabilities of Kama Mining Company, a subsidiary of Silvinit, which were borrowed in 2008 in order to obtain the subsoil usage license for the company. 

In 2008 Kama Mining Company has won the auction for the development of the plot at the Verkhnekamskoye field of potassium and magnesium deposits. This field in the Perm Krai is the world's second largest, with its reserves of more than 120 billion tons. The company has paid 35.14 billion roubles into the state budget for the Polovodsky plot that has more than 3 billion tons of sylvinite.

JSC Silvinit informed RusBusinessNews that this loan is the largest of any borrowing ever made by the Perm Krai companies for this kind of duration. The money from Sberbank will enable the company to establish a new mining and chemicals integrated facility for the production of potassium fertilisers at the Polovodsky plot.