The Russian coal mining company Belon Group (Belon) has announced its decision to halt exports of its products and to increase shipments to its new owner, Russian steel producer Magnitogorsk Iron and Steel Works (MMK), in order to meet 70 percent of MMK's coking coal requirements (currently it meets about 35-40 percent of the producer's needs).
Following MMK's acquisition of a 82.6 percent controlling stake in Belon, this company has adopted a new policy based on three main goals: the sale of non-core assets (such as its steel trading network and its unfinished light steel structures plant in Lipetsk), the reduction of its own costs, and the increase of production via investments.
Accordingly, in 2010 Belon's investments are planned to reach Ruble 4.7 billion (about $157.6 million), while its production plan for the year includes the output of 8.21 million mt of coal, including 5.11 million mt of coking coal (in 2009 Belon produced 3.448 million mt of coking coal.
MMK chairman Victor Rashnikov had previously estimated the annual coking coal requirements of the plant at seven million mt.