Evraz seeks to expand its mining business

Alexander Frolov, CEO of the Russian mining and steel producing company Evraz Group, has stated that the company is now seeking to acquire suitable steel or iron ore assets in South Africa, as well as iron ore projects in eastern Siberia in Russia.
 
Mr. Frolov stated, "We are interested in steel and iron ore assets in South Africa. We are now considering the possibility of purchasing the steelmaking division of Scaw Metals Group, a subsidiary of Anglo American plc."
 
He added that Evraz Group is endeavoring to enlarge its mining business amid the soaring prices of metal products and minerals in the international market. It is also considering developing the Timir ore mine in the Yakutia region of eastern Siberia, which has total reserves of 5 billion mt, in collaboration with Russia's largest mining company Alrosa.
 
Mr Frolov also predicted that in the first quarter of 2011 Evraz's net profit margin may reach as high as 89 percent. In 2011, the company plans to expand its capital expenditure by 44 percent year on year to $1.2 billion.