Russian steelmaker, Evraz Group SA, has agreed to buy a coal-mining licence at a price of just 6 per cent of the winning bid for the same deposit two years ago.
In 2008 Evraz agreed to pay 17 billion roubles for the Mezhegey coal field in Siberia’s Tyva region, however the company withdrew its offer due to the economic crisis. Today the company announced that it is to pay just 950 million rubles ($32 million) for the same coal-field. Mezhegey is situated 800 km east of the city of Novokuznetska and contains 214 million metric tons of coking coal (Russian grade Zh) used in steelmaking.
"The development of the Mezhegei coal deposit is a strategic investment aimed at covering the needs of Evraz's steelmaking facilities for high quality hard coking coal after the depletion of existing Zh-grade coal reserves," Chief Executive Alexander Frolov said in a statement.
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