Arcelor Mittal acquires 2 Siberian mines for $650 mn

Written by Agencies | Moscow, January 31: | Updated: Jan 31 2008, 22:22pm hrs
NRI steel tycoon L N Mittals ArcelorMittal on Thursday acquired two Siberian coal mines from Russias leading steel producer Severstal for USD 650 million.

Under the deal, Severstal will sell ArcelorMittal its 97.6 percent stake in the Beryozovskaya and 99.35 percent stake in the Pervomaiskaya coal mines in the West Siberian Kemerovo Region.

As a part of the deal, Severstal will also sell Arcelor Mittal the Severnaya Coal Preparation Plant (part of the Beryozovskaya Mine), 100 per cent of the Zhernovskaya-3 deposit and controlling stakes in three companies that provide the mines with transport, assembly, repair and power supply services.

This is a good deal for Severstal, allowing us to focus on the development of existing, strategically important assets, as well as invest in new coal projects, Roman Deniskin, a senior official of Severstals mining company Severstal Resurs said in a corporate release.

In 2007, the Beryozovskaya and Pervomaiskaya mines produced a total of 1.77 million metric tons of coking coal concentrate.

Two years ago, Severstal of Alexei Mordashov and Mittal Steel of L N Mittal were locked in a rivalry to acquire Europes largest steel maker Arcelor, which ended in favour of the NRI steel baron.