Russian mining company the MBC Corporation plans to sign an agent agreement with the Russian Magnesium company to take out a 13 billion ruble loan from state-owned Vnesheconombank (VEB), the corporation said in a statement late Monday.

The deal is to be signed by no later than January 30.

Russian Magnesium is seen to direct the borrowed funds to the construction of a 16 billion ruble magnesium plant in the Sverdlovsk Region city of Asbest. The project is to be realized in conjunction with state-run nanotechnology company Rusnano.

Apart from VEB, financing is to be provided by Rusnano and the MBC Corporation.

Russian Magnesium, or Rusmag, focuses on the development and commercialization of industrial facilities through the use of surplus raw materials, as well as available utilities and infrastructure, to produce magnesium and silica based products, according to the company’s Web site.

The MBC Corporation comprises an association of mining companies within the Metropol Group, one of Russia’s largest investment industrial groups, the corporation said on its Web site.

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