The Russian steelmaker and iron ore producer Evraz Group (Evraz) has announced that its subsidiary Nizhny Tagil Iron and Steel Works (NTMK) has completed the acquisition of 82.9 percent of voting shares in the largest Russian ferrovanadium producer Vanady-Tula.
Accordingly, Evraz financed this deal via an approximate $100 million deposit provided in December 2007 to secure a call option, and therefore does not need to make any additional payment. All necessary regulatory approvals have been duly received.
Vanady-Tula accounts for 70 percent of Russia's annual vanadium production, while its share of the world market amounts to 15-18 percent.
"The acquisition of Vanady-Tula will allow Evraz Group to expand its vanadium processing capacities and strengthen its position in the Russian and world vanadium markets," reads the company's statement.
Evraz is the only producer of vanadium-rich ore in Russia, and has become one of the largest producers of vanadium globally, with assets in Russia, South Africa, United States and the Czech Republic.
In 2008, Evraz increased its vanadium-added alloys and chemicals output by 26.3 percent year on year to 15.355 million mt, but decreased its vanadium-added slag production by 6.3 percent to 11.010 million mt.