Why wasn't Belbazhsk field mined even though it was discovered in 70s of 20th century?Belbazhsk is one of the biggest rock salt mines that was discovered in 1973. It is confirmed it has 2,5 billions tons of rock salt. It was planned to be mined in 1980-1990 for the needs of the chemical industries of Nizhegorodskij and Povolzhie regions. But due to the political and economic events that were undergoing at the period ( The disintegration of the USSR and the disintegration in the branches of industry), the project was left incomplete. Only in 2014 the circumstances were formed to let start to fulfill it.
Is Belbazhsk mine owned by a company or is being rented?The mines are not being rented and according to the Russian Law "About the land" land is officially only governmental property. But according to the licenses all the mined minerals are companies' property (it also includes paying all kinds of taxes). It is important to state that confirmed minerals that game not yet been mined are estimated as Balance sheet assets by Russian and foreign financial institutions.
Who is the owner of the "Sol Rusi"?The founder is an organization "Resurs". There approximately 1000 stockholders nowadays. The majority of stocks is owned by "Resurs". More information about the stocks capital you can find here:
http://solrusi.ru/investoram/aktsionernyy-kapital/str
What authorities control the actions of "Sol Rusi"?The organization acts according to the laws of Russian Federation
The emission of stocks by the company is controlled by the Central Bank of Russian Federation
While performing primary activity, "Sol Rusi" is supervised by the Ministry of Industry and Trade of the Russian Federation, Federal subsoil use agency, The Federal Service for Supervision in the Sphere of Nature Management and etc.
The control and supervision over the company is also performed Federal taxes agency
Who is responsible for the growth of the cost of the stocks?The growth of the stocks was part of the process of growth of the company. Whenever the company grew bigger, its stocks were also evaluated more expensive. The evaluation is performed by independent evaluation agencies "2K" and "Finexpertise"
Whose money are used to proceed with the project?We are planning to go on with project using only our own Private capital
Besides from using private capital we will also try to use the means of Project investment. But we must take into consideration that using obligatory investment delays dividend payments or even decreases them as when we start selling the salt all the money will be spent on paying the interests on the loans. Right now we don't need investments. The use of project investment is planned in 2018 if we would understand that we need it.
Nowadays we consult on the matter of project investment with the leading governmental and private banks like "Sberbank", "VTB", "MKB" and etc. the final decision will be made depending on the policy of corporate management. As our investment is connected with the delivery of European equipment and technologies, we evaluate the risks of financing the delivery with the help of financial organizations of Germany, Switzerland and Czech Republic
Why doesn't the company its own stocks?All issued stocks were spread among the shareholders. Right now the company doesn't own the issued stocks and doesn't speculate with them by selling or buying them due to the governmental regulation.
What risks are there for "Sol Rusi" during the development of Belbazhsk mines?The risks are standard for the company as for any other company in Russian Federation. In case of risky situation the company will put all its resources to fully or partly negate its effects by competent and effective production and financial policy.
The information about the risks can be found quarter and annual reports.
What is the payback period of the development of Belbazhsk mines?The payback period is assumed to be 5 years.
Will the dividends be paid to the shareholders? How much will they be?The decision whether to pay the dividends or not is made by General Meeting of Shareholders of "Sol Rusi". The source of dividend payments is net profit of the company the gain of which is planned after the construction of the plant.
When does the company plan to act on the Stock exchange?In our opinion the situation on the market is not favorable enough to act on the Stock exchange. When the situation gets more favorable the company will decide whether to act on the market or not.
Were the prospecting works done by "Sol Rusi" in Belbazhsk mines?The prospecting works were done in full volume , the mines were governmentally registered as the source of minerals. This can be confirmed by:
1. Minutes of the meeting of the Central Commission for the Development of Solid Mineral Deposits № 155/16 since 16.08.2016;
2. Minutes of the meeting of the State Commission on Mineral Reserves № 2815 since 11.07.2012.
In 2016 the IMC Montan company also evaluated the Belbazhsk mines on the presence of mineral resources and stone salt in accordance with the code JORC (JORC code 2012). The evaluation included an all-round technical audit of the location including: geological, mountainous, technological, infrastructural aspects; marketing strategies, human resources, the financial effectiveness of the project.
Why different information about the productive capacity can be found in different sources: somewhere it is 600 thousands tons, somewhere 1 million tons?A plant with a productive capacity of 600 thousands tons was built in Belbazhsk. In case the demand grows the company will decide whether to use extra investment or not and increase the productive capacity to 1 million tons.
How many workplaces will be on the plant?There will be 450 workplaces
Is the permission on building the salt-processing plant in Nizhegorodskij region acquired?The permission on building will be acquired after the final discussion of project documentation. Right now the building process is fully agreed with the Government
Why haven't you fully prepared design and estimate documentation?Design and estimate documentation is being prepared in accordance with the project decisions. As we are seeking for a more effective and a cheaper way to build the facilities, we haven't prepared the design and estimate documentation
Who can be the supplier of equipment for your plant?Right now the purchase of equipment is not required and therefore not provided
It is also worth a notice that purchase of the equipment will be done step by step, some of the contracts are being discussed at the moment
Several meetings with the world leaders of providing the equipment and engineering services for the future building were attended. Several propositions were acquired from potential suppliers (GEA (Germany), HPD (Spain), SEP (Switzerland), Evatherm (Switzerland), Benetec (China), "SVERDNIIHIMMASH" (Russia)); with each we work on optimization of the costs and finding the best technological decisions
With the competitive factor in play we are seeking for the international company that will provide us with the installations of cogeneration of electricity and steam on the basis of natural gas combustion. Such propositions were acquired from C
Such propositi
ons were acquired from Caterpillar (USA), GE Jenbacher (Austria), MTU (Germany).
How much of required equipment will be ordered in Russia and how much abroad?70 % will be acquired abroad, 30 % - in Russia.
When does the company plan to provide the market with the Belbazhsk salt for the first time?The second half of 2019
Will the probable cancellation of the ban of import of the salt from the sanction countries affect the project?The project was evaluated in 2013, for 4 years on the market "Extra" there were no core changes. The ban on import didn't affect the "Extra" salt market as the imported salt would only make 6-8 % in the whole volume of imports. The main importer of the salt is Belorussia at the moment.
Our company's target is to replace the Belorussian salt as it can fully satisfy the demand in salt for the Central region of Russia. Thanks to the close location to the Belbazhsk mines we can lower the logistical costs and make them competitive on the market. Besides "Sol Rusi" already has preliminary applications from different companies with a total volume of 900 thousands tons.
