According to local media reports, Russian tycoons Oleg Deripaska and Vladimir Potanin, the main shareholders in the world's largest palladium and nickel producer Russian-based Norilsk Nickel, have proposed a merger of up to five Russian mining and metallurgical companies aimed at creating the world's second largest mining company.
The proposed mining giant would be part-owned by the Russian government, which would swap more than $27 billion in total debt from all companies involved for at least 25 percent plus one share in the new company.
The new merger would include companies such as iron ore producer Metalloinvest, steelmaker Evraz Group, mining and steel producing group Mechel, and the potash miner Uralkali. However, analysts are skeptical of the degree of favor the proposed merger will find among the owners of Evraz, Mechel and Uralkali, who have not been mentioned as signatories to the plan.
The proposal is to be considered at a meeting with Russian vice-prime minister Igor Sechin on Tuesday.