Kazakhstan-based mining group Eurasian Natural Resources Corporation Plc. (ENRC) has announced the acquisition of a 25 percent stake in Shubarkol Komir (Shubarkol), a major thermal coal and semi-coke producer in Kazkhstan, for a cash consideration of $200 million.
ENRC acquired the stake in Shubarkol through a public auction process on the Kazakhstan Stock Exchange (KASE) . The settlement of the shares through the KASE is expected to be completed by the end of the first quarter of 2009.
Commenting on the acquisition, ENRC CEO Dr. Johannes Sittard said, "The acquisition of Shubarkol provides for the further strategic development of the group in the region. In addition, it strengthens the integrated business model of ENRC through securing a reliable and cost effective supply of relatively high quality thermal coal and semi-coke, thereby further enhancing the group's position as a low cost producer."