Lebedinsky signs contract for DRI plant
Lebedinsky Mining and Processing Plant (Lebedinsky GOK), owned by
Russia's Gazmetall, signed an agreement with
Japan's Kobe Steel owned American Midrex Technologies to build a plant that would produce direct-reduced iron for use in steel
production, iron-making and foundry applications.
Lebedinsky will pay Midrex $55 million for the project. The contract is part of a $240 million plant
construction project in
Russia that should begin bearing fruit in March 2007. The bulk of the
production will be sold to
Europe.
This marks the fifth large project that Midrex signed on for since November 2004.