Chinese banks could finance construction of new mine of Donetsksteel

Chinese banks could finance the construction of a new mine on block No. 11 of PJSC Pokrovske mine management (formerly Chervonoarmiyska-Zakhidna 1 mine), the press service of Ukrainian President Viktor Yanukovych has said.

Relevant intentions are stipulated in the framework agreement between Donetsksteel and Minmetals Engineering Co. Ltd (China), signed in Beijing on December 5.

Minmetals Engineering will act as general contractor for the mine construction. The cost of the facility construction is $247 million, the term of the contract execution is 2.5 years, and the term of financing up to 9.5 years.

In addition, Greentech Energy LLC, China National Materials Group Corporation and China Expert and Credit Insurance Corporation (SINOSURE) signed a framework agreement on financing the construction of renewable energy objects of over 1 GW in Ukraine.

SINOSURE also signed a cooperation agreement with Ukraine's State Agency on Energy Efficiency and Energy Saving.