Rostekh might purchase 25% of operator of Udocan

​Rostekh might purchase 25% of Baikal Mining Company, operator of the Udocan deposit’s development on the account of future dividends of the company.

The PR and strategic research director of Rostekh, V. Brovko, said that Rostekh has no limits by the period of realization of the option but meanwhile it is not planned to purchase the stake. When the Chinese fund Hopu Investments ceased the negotiations with Metalloinvest on the participation in the development of Udocan, the Russian company decided to activate the plan of the project’s development. At the first stage the shareholders of Metalloinvest will develop the project by themselves on the funds attracted at VEB.

Baikal Mining Company will construct infrastructure, road to the deposit, and in 2 years at the second stage it is planned to attract investors. Rostekh might realize the option by 25% at any moment with the payment from the future dividends. The project is complicated, the payback period is 25 years, Hopu needed to show a successful history and we understand them, V. Brovko said.