The project for setting up Russian Magnesium in Sverdlovsk Region might be picked up by a new investor if the current proprietor decides to stop any further financing, RIA Novosti-Ural refers to Deputy Head of Sverdlovsk Region Government Alexander Petrov as saying.

The plant Russian Magnesium that will produce magnesium metal and precipitated silica with a nanodimensional structure is now under construction. The company management announced earlier the construction would be completed in 2014. The project requires a total of 16bn RUR worth of investments; the first extension costs 6bn RUR.

According to Petrov, Russian Magnesium’s primary shareholder, the Swiss company Minmet Financing Company S.A., stopped financing the project altogether in November 2011 because of financial troubles.

‘As the funding stopped, the company faces some debts now. These amount to about 60m RUR: this is arrears in wages, unpaid taxes, and – the lion’s share – payments for the project already designed by Uralgipromez’, Petrov said.

Petrov also said that Sverdlovsk Region Government was informed Minmet Financing Company S.A., which owns 50% plus four shares in Russian Magnesium, handed its shareholding over to Mark Lisnyansky’s Solimag.

‘In case Solimag refuses to finance the project further, we are considering a number of other investment options. For one, Uralgipromez and its proprietor AFK Corporation say they are prepared to go on with this project,’ says Sverdlovsk Region Vice Premier.