Russian mining and steel producing company Evraz announced today, September 19, that it has signed a binding agreement for the sale of its wholly-owned subsidiary EVRAZ Vysokogorsky Iron Ore Mining and Processing Plant (VGOK) to Russian metallurgical company NPRO URAL for a consideration of $20 million.
The transaction is subject to receipt of approval by the Russian Anti-Monopoly Service and certain corporate actions and is expected to be completed during October.
VGOK and Evraz have executed a three-year agreement for the supply of iron ore concentrate from VGOK to Evraz's West Siberian Iron and Steel Plant on market terms, as well as a 10-year agreement for the processing by VGOK of certain by-products of Evraz's Nizhny Tagil Metallurgical Plant.
Located near the city of Nizhny Tagil, VGOK is one of the largest iron ore mining plants in the Ural region, Russia. It has three mines at the Vysokogorskoye, Yestuninskoye and Goroblagodatskoye iron ore deposits and owns ore processing facilities. In 2012, VGOK mined 4.6 million metric tons of iron ore, from which it produced 1.1 million mt of sinter and 1.2 million mt of concentrate. In addition, VGOK mined one million mt of limestone in the given year.