-(1)-Reinhausen-(1).jpg?lang=en-US&ext=.jpg)
Veolia.gif?width=200&height=200&mediaprotectionhash=4deca34a0d5a00013b5a0ccdc2dcf98fd2c17aabb57eb7bbb27200552f29c247&ext=.gif)
OAO MMK Acquires Shares in Coal Producer OAO Belon
10/08/2007 - Magnitogorsk Iron & Steel Works Open Joint Stock Co. announces the acquisition of 10.75% shares in OAO Belon, a Russian producer of coal and coal concentrates.
Magnitogorsk Iron & Steel Works Open Joint Stock Co. recently announced the acquisition of 10.75% shares in OAO Belon, a Russian producer of coal and coal concentrates.
The decision for OAO MMK’s participation in the authorized capital of OAO Belon was taken by the OAO MMK Board of Directors on September 13. OAO MMK acquired the stock from Sapwood Investments Limited.
According to OAO MMK, participation in the authorized capital of OAO Belon, which has a strong growth potential, is in line with Magnitogorsk Iron & Steel Works’ strategic plans toward creation of its own raw materials base. The move will also allow OAO MMK to further secure long-term supplies of the required grades coal.
Going forward OAO MMK will consider a further increase of its stake in OAO Belon.
The Magnitogorsk Iron & Steel Works OJSC (ММК) is a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. ММК turns out a broad range of steel products with a predominant share of value-added goods. In 2006 the company produced 12.5 million tonnes of crude steel and 11.3 million tonnes of commercial products. In 2006 sales under US GAAP amounted to USD 6.4 billion, with net profit standing at USD 1.4 billion. The company ranks 20th among the world’s largest steel producers (according to IISI), and is one of the leaders of Russia’s steel industry (according to Chermet). The company
Belon Group is a dynamic producer of coal and coal concentrate and one of the leading steel traders in Russia. OAO Belon is the managing company of the Group, which comprises several mining, processing and service companies. The Group includes Chertinskaya-Koksovaya, Novaya-2, Listvyazhnaya and Kostromovskaya (under construction) coal mines, Novobachatskiy-1 and Novobachatskiy-2 open-cast mines (under construction), Belovskaya and Listvyazhnaya concentration plants. In 2006 coking coal production amounted to 1,724 million tonnes, coal concentrate production—to 4,389 million tonnes. The total volume of coking and thermal coals produced came to 3,381 million tonnes. According to Belon Group IAS accounts the Group's revenue for 2006 amounted to RUB 10 billion 430 million, and net income for 2006 was RUB 1 billion 222 million.
