Lebedinsky signs contract for DRI plant

Lebedinsky signs contract for DRI plant

Lebedinsky Mining and Processing Plant (Lebedinsky GOK), owned by Russia's Gazmetall, signed an agreement with Japan's Kobe Steel owned American Midrex Technologies to build a plant that would produce direct-reduced iron for use in steel production, iron-making and foundry applications. Lebedinsky will pay Midrex $55 million for the project. The contract is part of a $240 million plant construction project in Russia that should begin bearing fruit in March 2007. The bulk of the production will be sold to Europe. This marks the fifth large project that Midrex signed on for since November 2004.