EVRAZ optimises Evrazruda's assets
27 December 2013 - Further to its announcement on 20 November 2013 EVRAZ plc (LSE: EVR) announces signing of an agreement with LLC Ruda Khakasii on the acquisition by LLC Ruda Khakasii of a number of Evrazruda's iron ore assets and utilities companies located in the Republic of Khakassia and Kemerovo region, Russia, for total cash consideration of RUB 10 million (approximately US$306,000).
The assets include the following iron ore mining and processing facilities and energy generating units:
- Abakan iron ore mine, Khakassia;
- Teya iron ore mine, Khakassia;
- Mundybash beneficiation plant, Kemerovo region;
- Abaza-Energo, Khakassia;
- Teyskie Energoseti, Khakassia.
According to the management accounts, as at 30 June 2013, their total gross assets were US$9 million. For the year ended 31 December 2012, these assets produced a total loss before tax of US$20 million.
The parties have also signed a 10-year agreement on supply of not less than 150,000 tonnes of iron ore concentrate per month from the Mundybash beneficiation plant to EVRAZ ZSMK steel mill, as well as short-term agreements on purchase by Evrazruda of primary iron ore concentrate produced by the Abakan and Teya mines to ensure continuity of supply during the transition period. The agreements are signed on market terms.
The transaction is in line with the EVRAZ strategy to optimise its iron ore asset portfolio, and is targeted both at reducing operating losses and at improving Evrazruda's financial performance.
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For further information:
Media Relations:
Vsevolod Sementsov
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871
[email protected]
Investor Relations:
Sergey Belyakov
Director, Investor Relations
London: +44 207 832 8990 Moscow: +7 495 232 1370
[email protected]
EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, Kazakhstan, USA, Canada, Czech Republic, Italy and South Africa. EVRAZ is among the top steel producers in the world based on crude steel production of 15.9 million tonnes in 2012. In 2012 EVRAZ sold 15.3 million tonnes of steel products. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2012 were US$14,726 million, and consolidated EBITDA amounted to US$2,012 million. The H1 2013 consolidated revenue was US$7,362 million and the H1 2013 EBITDA was US$939 million.
