On 19 December, Rusal (00486.HK) announced that a member of the Group entered into a contract with an associate of En+, pursuant to which the associate of En+ agreed to provide transportation services to a member of the Group (the “New Transportation Contract”).
Pursuant to the New Transportation Contract and the previously disclosed Transportation Contract, the total annual transaction amounts payable by the Group to the contact person of En+ for each of the financial years ending 31 December 2023, 31 December 2024 and 31 December 2025 are estimated to be approximately US$24,097,000, US$2,173,570 and US$2,214,419 respectively.
The New Transportation Contract was entered into in connection with transportation. The Company believes that the proposed transaction under the new transportation contract is in the interest of the Company as the services to be provided are required for the Group’s production process and the service provider offers competitive prices to meet the Group’s transportation needs.
The rail transport services under each of the New Transport Contracts are provided by JSC Otdelenie Vremennoy Ekspluatatsii (OVE), the owner of the rail section required for the transport services.
The Company further announces that the Group member companies entered into a contract with the contact person of En+, whereby the contact person of En+ agreed to supply thermal energy to the Group member companies (the “New Thermal Energy Supply Contract”).
Pursuant to the New Thermal Energy Supply Contract and the previously disclosed Thermal Energy Supply Contract, the total annual transaction amounts payable by the Group to the contact person of En+ for the financial year ending 31 December 2023 and the financial year ending 31 December 2024 are estimated to be approximately US$9,041,000 and US$239,000 respectively.
The purpose of entering into a new heat supply contract is to obtain heat energy for the Group’s production processes and its facilities, for which JSC “Baikalenergo” has a monopoly on heat energy transportation in the Teshet and Sayanogorsk regions and the rates are regulated by the Irkutsk Regional Price Bureau and the State Committee on Prices and Energy of the Republic of Khakass, and for which a new heat supply contract has been concluded.
Khakass Utility Systems LLC has a monopoly on the supply of thermal energy in the Sayanogorsk region, and the rates are regulated by the State Committee on Prices and Energy of the Republic of Khakass, so a new contract for the supply of thermal energy has been concluded in this regard.
The Company considers the proposed transactions under the new heat supply contract to be beneficial for the Company, as there are no alternative suppliers in the region.
Post time: Dec-20-2022