Acron subsidiary Verkhnekamsk Potash Company has executed a package coinsurance contract for construction of the Talitsky mine with leading Russian insurance companies VTB Insurance and SOGAZ. This contract covers all construction and assembly risks, third party civil liability, VPC property at the mine site and other aspects. As of the date of the contract, the insured amount exceeds RUB 53 billion. Risk reinsurance on the international insurance market is contemplated in view of the project’s complex nature and significant insurance coverage. Most of the risks will be transferred to international companies within the next few weeks, making the Talitsky mine the largest Russian mining project on the international insurance market.
Oscar Valters, Acron’s Senior Vice President commented:
“The Talitsky mine is strategically important for our company and we are keen to protect ourselves and our co-investors from all risks that could arise during the course of this major project. The insurance programme and the contract were drafted by Willis insurance broker, and leading Russian and international insurance companies will be our partners at least through 2018. This transaction is further proof of the Acron Group’s creditworthiness and serves as an additional guarantee for our co-investors.”