Russian lawmaker Mikhail Slipenchuk is seeking a Chinese investor for the USD 1 billion Siberian zinc deposit owned by his company IFC Metropol after Lundin Mining Corp quit the project following the 2008 financial crisis.

Mr Slipenchuk in an interview in Moscow said that “China will be the main consumer of our metal, that’s why we prefer to get a Chinese partner.” He added that talks are being held with Metallurgical Corp of China and China Nonferrous Metal Industry’s Foreign Engineering and Construction Co.

Mr Slipenchuk is ready to sell as much as 49% of MBC Resources Ltd owner of the rights to the Ozernoye zinc and lead deposit near the world’s deepest lake at Baikal in East Siberia. IFC Metropol plans to retain a controlling stake.

China became Russia’s largest trading partner last year after helping fund a 3,700 kilometer (2,300 mile) pipeline to ship oil from Taishet in Siberia to Daqing in northeast China. Russia plans to ship Siberian natural gas to China and boost trade turnover between the two countries to $200 billion in 2020, Prime Minister Vladimir Putin said in October.

China is a natural customer for Siberian metals because of its location and need for industrial metals, MBC Resources said in e-mailed reply to questions. Zinc is used to make galvanized or corrosion-protected steel for construction and automaking.

Ozernoye holds about 157 million metric tonne of ore, with 5% zinc and 1% lead, based on Joint Ore Reserves Committee international standards.

(Sourced from Bloomberg)