RDIF and partners invest in metals and mining company Intergeo

Press release, 14.03.2019

Moscow, March 14, 2019 – A group of investors including the Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, the Russia-China Investment Fund and a leading Middle Eastern sovereign fund (“Group” or Investors”) announces the completion of a deal to acquire a 9.53% stake in Intergeo (the "Company"), a metals and mining company and part of ONEXIM Group. The investment is included in the list of the Intergovernmental Russian-Chinese Commission on Investment Cooperation initiated by RDIF and the Chinese Investment Corporation in 2014 to promote cross-border investment projects. The Investors will nominate Alexander Khloponin and Lev Kuznetsov as their representative on the Board of Directors of the Company.

The Group’s investment will promote further growth in the Company's business, including the development of the Kingash and Ak-Sug polymetallic deposits, located in the Krasnoyarsk Territory and the Tyva Republic in Russia respectively. They have significant reserves of copper, nickel and a number of other non-ferrous metals. In particular, Kingash is the second largest nickel deposit in Russia, while Ak-Sug is one of Russia’s top-5 in terms of copper reserves. Total investments in the project aimed at developing the fields and constructing associated infrastructure will exceed RUB 178 billion.

Kingash’s mineral resources include 2.4 million tonnes of nickel, 1.1 million tonnes of copper, 98,000 tonnes of cobalt, 52,000 tonnes of gold and 261 tonnes of platinum group metals, according to the JORC Code. The planned annual capacity of the mining and processing plant will be 520,000 tonnes of copper-nickel concentrate. Production is expected to begin in 2024.

Ak-Sug’s mineral resources include 5.1 million tonnes of copper and 121 tonnes of gold, according to the JORC Code. The planned annual capacity of the mining and processing plant is 500,000 tonnes of copper concentrate. Production is expected to start in 2023.

RDIF and partners’ investments in Intergeo are aimed at the implementation of the national projects “Labour Productivity and Employment Support” and “International Cooperation and Exports”.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“As part of our work within the Intergovernmental Russian-Chinese Commission on Investment Cooperation, established on the initiative of RDIF and the Chinese Investment Corporation to promote cross-border investment projects, we have attracted investments from Chinese investors in a Russian greenfield project aimed at creating, through Intergeo, one of the largest companies in the Russian non-ferrous metals sector. This investment is an example of the successful involvement of Chinese partners in a Russian project, implemented from scratch. The project is also expected to attract funding from a number of Chinese banks. The project will give significant impetus to the economies of the two Russian regions and help create over 10,000 jobs. The company's products have significant export potential, including in the Chinese market. We highly appreciate the professionalism of the Intergeo team and their extensive experience in the mining industry, including the construction of the Bystrinsky Mining and Processing Plant, a global top-10 copper mining facility.”

Dmitry Privalov, CEO of Intergeo, said:
“We are implementing a very ambitious project - creating, from scratch, the largest mining enterprise in modern Russia, focused on a new, rapidly developing segment of non-ferrous metallurgy, the production of battery metals. The project includes the design and construction of two of the world’s largest ore mining and processing plants in underdeveloped regions of Russia. This will not only create a new industry leader, but is also a major economic development for our regions. We are confident that the arrival of new partners will allow us to realize our greatest ambitions both in the Russian and the promising Asian markets.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than 1.4 trillion rubles and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 700,000 people, and generate revenues which equate to more than 5% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than 40 billion dollars. Further information can be found at www.rdif.ru

Intergeo Management Company LLC was established in 2007 in order to consolidate and develop promising non-ferrous metal deposits in Siberia and the Far East. The Company's assets include four mining licences, on the basis of which the Ak-Sug and Kingash projects are being developed. All work on mining licences are implemented in strict accordance with the terms of subsoil use. Currently, the Ak-Sug and Kingash projects are at the design stage of mining and processing plants and infrastructure.

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Leach / Maria Shiryaevskaya
Hudson Sandler
Tel: +44 (0) 20 7796 4133