Turkish company Silvermet has secured US$49mn project financing from the European Bank for Reconstruction and Development.

The facility has a tenor of 9.5 years with no repayments for the two-year construction period.

The finance will be used to develop a US$70mn zinc plant in Turkey through a joint venture with Befesa Zinc. The plant will have capacity to produce 60 million pounds of zinc per year and is expected to be commissioned by early 2015.

The remaining US$21mn required to finance the project will come from the joint venture partners.

Stephen G. Roman, president and CEO of Silvermet, says: “The senior project financing facility announced today marks a significant corporate development milestone for Silvermet. Our new increased processing capacity coincides with announced zinc mine closures and an emerging consensus among zinc industry analysts forecasting a tightening of zinc concentrate supply in the coming years.”