Russian mineral fertiliser producer Acron has secured US$1.5bn in project finance for the construction and development of a potash mine.

The funding comes in both equity and debt financing and involves three banks, Russia’s Vnesheconombank (VEB), Eurasian Development Bank (EDB) and Austria’s Raiffeisenbank and will be utilised by Acron’s Verkhnekamsk Potash Company (VPC).

The first tranche of financing comes in the form of equity: with VEB having already purchased 20% minus one share in VPC, EDB 9% and Raiffeisenbank 9%, for a combined US$408mn. Acron has retained a 62% share in the company.

The equity finance will be used to construct the mine in the Talitsky area of the Verkhnekamsk potash deposit in Perm Krai, in Russia’s Urals region.

In 2014, VEB will provide VPC with a credit facility of US$1.1bn in order to further develop the project. Acron’s estimated capital expenditure for the entire project is US$2.7bn. A spokesperson from VEB was unable to confirm the tenor, pricing or security used to obtain the loan to GTR.

Acron’s chairman Alexander Popov welcomes the financing, saying: “At present, we have attracted sufficient financing for full-scale construction of the Talitsky mine. We intend to use the credit facility in future which guarantees further financing of the project’s development. We are confident in our ability to launch the new potash production facility at the Talitsky area in 2016 and that our investors will benefit from the company’s rise in value.”