Romania may sell its 28 percent share in Ukraine-based Krivoy Rog Mining and Processing Works of Oxidized Ore (KGOKOR) to the world's largest integrated metals and mining group ArcelorMittal on condition that the group doubles steel production at its Romanian subsidiary ArcelorMittal Galati, local newspaper Financiarul has reported, citing Romania's minister of economy, trade and business environment, Adriean Videanu.
According to Mr. Videanu, ArcelorMittal, which also owns the mining and steel plant ArcelorMittal Kriviy Rih in the Ukrainian city of Krivoy Rog, is very interested in KGOKOR, which would guarantee ore resources for the planned growth of production to about 4.5 million mt per year at ArcelorMittal Galati.
"I do not know for sure how valuable these shares are. What is most important is to estimate the correct worth and take a decision...Indeed, if we do not take a decision now, everything will be ruined. Material is being stolen all the time," Mr. Videanu said.
As previously reported by SteelOrbis, the construction of KGOKOR started in 1983 during Soviet times, with the main shareholders of the enterprise including Ukraine (56.4 percent), Romania (28 percent) and Slovakia (15.6 percent). Construction works stopped in 1996. As per report, since 1987 Romania has invested approximately $800 million in KGOKOR.