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Vol 215
Pages:
115
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RUS

Project finance for strategic investment projects of mining corporations

Authors:
T. V. Ponomarenko1
N. A. Belitskaya2
About authors
  • 1 — National Mineral Resources University (Mining University)
  • 2 — National Mineral Resources University (Mining University)
Date submitted:
2014-11-01
Date accepted:
2015-01-22
Date published:
2015-05-01

Abstract

A strategic project realization in large companies leads to long-term competitive benefits, but is very costly, has high risks and complicated structural arrangement. Long payback period, high debt and risk burden result in the necessity to use project finance facilities. The research aims to find out conditions and justify the possibility of the use of project finance in Russian mining companies in terms of the new legal framework. Characteristics of projects requiring the use of project finance are determined. The article clarifies the principles and definition of project finance. Specific risks and realization problems of project finance in the Russian context are analyzed. A comparison between the Russian legal framework of project finance and regulation in foreign countries is made; examples and problems in the Russian project finance practice are shown. The results can be used by mining companies for justification of the optimal financial strategy for major investment projects realization.

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References

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