VEB to support Evraz in ore.

The state corporation can finance the development of "Timir".

VEB can finance The Yakut "Timir" iron ore project, implemented by Evraz and Alrosa. Yegor Borisov, the Acting head of Yakutia, asked the state corporation to support the project by providing $ 180 million. VEB is already considering the application of the GC "Timir". At the first stage the project is justified by the needs of the Evraz’s West Siberian Metallurgical Plant, but its profitability while expanding is not so obvious.

Earlier in the week Yegor Borisov, the Acting head of Yakutia, asked Vladimir Dmitriev, the head of Vnesheconombank, to support the first stage of the "Timir" iron ore project in the country, two sources of "the Kommersant" familiar with the contents of the official’s letter stated. JSC "MMC "Timir"" owning four iron ore deposits in Yakutia, are part of Evraz (51%) and ALROSA (49% minus 1 share), VEB owns one share, representing the interests of the state. The balance reserves of all "Timir" fields are about 5 billion tons of ore. According to "the Kommersant" sources, Yegor Borisov asks VEB to allocate the project funding to develop the Taiga deposit with the reserves of 680 million tons of ore and construction of the mining and processing plant. This project is important for the country, according to the interim head of Yakutia it will increase the GDP by 3% and will provide 600 million roubles in tax payments per year only on the first stage.