Finnvera provides an export credit guarantee to finance Metso's deliveries to Türkiye
Finnvera has granted a buyer credit guarantee to an export credit that is financing in part Metso's deliveries to Turkish Hekimhan Mining. The export credit is arranged and granted by Landesbank Hessen-Thüringen (Helaba), Germany and amounts to approximately EUR 23 million.
Metso delivers Hekimhan Mining a calcination plant to the company’s Deveci Iron Mine, Türkiye. Previously, Metso modernized Hekimhan Mining´s calcination plant, which started operating in 2020. Calcination improves the quality of iron ore produced by the mine. The export credit financing granted complements the borrower's other long term credit financing.
Hekimhan Mining is part of the Turkish Kologlu Holding conglomerate, which started its operations in 1976. The group is owned by the founding family.
Exporter: Metso USA Inc., the United States of America.
Guarantee Holder: Helaba (Landesbank Hessen-Thüringen), Germany.
Lender: Helaba (Landesbank Hessen-Thüringen) , Germany.
Buyer and Borrower: Hekimhan Madencilik İthalat İhracat Sanayi ve Ticaret A.Ş., Türkiye.
Guarantors: Koloğlu Holding A.Ş., Türkiye and Kolin Inşaat Turizm Sanayi ve Ticaret A.Ş., Türkiye.
Project and Project’s location: the second siderite calcination plant at Deveci Iron Mine, Türkiye.
Export transaction/Goods: equipment and services for a calciner consisting of rotary kiln, cooler elements and supporting rolls.
Credit amount: approximately EUR 23 million.
Percentage of cover: 95 % comprehensive cover.
Credit period: 9 years.
ES -risk classification: A.
International standards applied in benchmarking: IFC Performance Standards 1-8 and relevant Environmental, health and social guidelines (EHS General Guidelines, EHS Guidelines for Mining).
Environmental and social impact information: According to Finnvera’s ES risk classification and the OECD's Common Approaches agreement, the transaction is identified as a risk category A project. An Environmental and Social Due Diligence (ESDD) assessment was conducted for the project. The main risks identified are dust emissions and, regarding the existing mining area, the permanent effects in the environment due to the existing open pit mining operations. An Environmental and Social Action Plan (ESAP) for the ES risks management has been developed and the measures have been assessed as suitable for the project. After ESAP implementation, the project follows Finnvera's ES policy.
Contact point: [email protected]
Signing date of the Finnvera Guarantee Agreement: 25 October 2023.
Information Published: 5 February 2024