Foreign Limited Liability Company “Slavkaly”, which is going to develop the Starobin potassium salt deposit, has received a number of tax and other exemptions for investment project implementation.
“Up to 2029, being investors we have some exemptions in Belarus, e.g. we can export all output, we are free of duties and severance tax,” — said the chairman of the board of directors of “Slavkaly” Mikhail Gutseriev, mentioning that Belarus is extremely attractive country in terms of investment.
He also emphasized that the ceremonial start of the project had been preceded by a three-year good and hard work. The construction of the facility can last for 4.5-5 years.
FLLC “Slavkaly” is going to to work through Belarusian Potash Company. Speaking about the place of the company within the framework of the global market, Mikhail Gutseriev said: “We will deliver the output in other regions. But the main buyer is China. The volume is rather small, 2 million tonnes. But I hope, that wiil be enough.”
Investment in the project is estimated at $ 1.668 billion. Its financing will be carried out at the expense of the group of companies “BIN” at the rate of about $ 268 million, and by bringing the loan of the State Development Bank of China ($ 1.4 billion) through Belarusbank at a rate of 4% per annum for 14 years, with the first payments in 5 years. Credit provider is the government of the Republic of Belarus.
Mikhail Gutseriev is sure that recent period of low prices for potash will no longer last. “All non-renewable reserves sooner or later will end and become more expensive. The population is constantly growing; agricultural is in need of fertilizer. The situation is always changing in potassium, as well as in oil industry. You just have to take a punch, learn how to run your business when there is no demand, for example it is better to reduce costs and create the co-called safety cushion. When100 rubles are earned, 20 rubles should be saved, ”- advised the head of the company. He believes that the completion of the construction will coincide with the period of demand growth.
Speaking about this work experience in Belarus, Gutseriev said: “We have already invested in realty, infrastructure. But it is the first time we have decided on such investment volume in Belarus. ”
FLLC “Slavkaly" is a resident of Belarus, established in 2011 by the British GMC Global Energy plc. The company is planning to construct the mining and processing complex with a capacity of 1.1 to 2 million tonnes of potassium chloride per year on the basis of Nezhinsky section of the Starobin potassium salt deposit.
The project envisages the construction of the mining complex, concentrator, gas turbine power plant for its own needs, the railway station “Slavkaly”, railway to the station “Urechye”, reconstruction of the railway station “Urechye”, reconstruction of the passenger platform in Luban, gas pipeline from Soligorsk GDS to the mining and processing complex, the power line with voltage from 110 kV from the substation “Potash”, the main step-down substation “Nezhinskaja”, road from the mining and processing plant to the road R-57.
Under the materials of ej.by