Two Russian companies, aluminum producer United Company RUSAL (UC RUSAL) and steel producing and mining company Mechel, will compete in the tender for the sale of the small Uregolsky Novy coal deposit, located in Russia's Kemerovo region.
In the event of UC RUSAL's victory in the tender, the Uregolsky Novy deposit will be its first coal asset in Russia.
The deposit, which is located near two deposits owned by Mechel, holds about 37 million metric tons of coal in reserves.
The auction has been preliminarily scheduled for April 25, 2008. The starting bid is fixed at Ruble 50 million ($2 million).