Severstal to buy controlling stake in AIOG

Friday, 23 May 2008 12:04:55 (GMT+2)

The Russian steel producer Severstal has announced that its raw material subsidiary Severstal Resurs has reached an agreement to purchase a 61.5 percent stake in African Iron Ore Group (AIOG) for a consideration of $37.5 million.

AIOG indirectly owns mining rights for the Liberia-based Putu Range iron ore deposit, which according to preliminary data holds about 500 million mt of iron ore reserves.

In addition, Severstal has announced that it will acquire a 6.29 percent stake in AIOG's subsidiary Mano River Resources for ₤2 million. Mano River Resources is engaged in the exploration of gold, diamonds and iron ore in Liberia, Sierra Leone and Guinea.

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