The Russian steelmaker and iron ore producer Evraz Group (Evraz) has completed the sale of its coal-producing Mine 12 to the Kemerovo-based company Stroyservis.
The deal, which was announced in June this year, has been completed after the receipt of required approvals from the Russian Federal Antimonopoly Service (FAS). According to the reports, the cost of Evraz's Mine 12 totaled $2 million.
As SteelOrbis previously reported, Evraz's Mine 12, acquired in March 2005, is one of the oldest active mines in the Kemerovo region (located in the southern part of western Siberia), operating since 1917. In 2008, Mine 12 produced 934,000 mt of coal, accounting for 6.7 percent of Evraz's total coal output. The mine's coal reserves are estimated at 42.3 million mt, including 18.6 million mt of coking coal.
In the western Siberian region of Kuzbass, Stroyservis has four open pits which produced a total of 3.2 million mt of coal in 2008, while it also operates one coal-preparation plant.
Evraz decided to sell its Mine 12 mainly due to the high cost of coal production at the mine; however, the mine will continue to supply coking coal to Evraz subsidiary West-Siberian Steel Works (ZapSib).