Mechel, one of Russia's leading mining and metals companies, has announced that it has closed a deal on the disposal of Mechel Bluestone, Inc. (Delaware, USA), including its mining operations, to a company owned by billionaire Jim Justice.
The deal includes an immediate cash payment of $5 million, royalty payments on coal mined and sold in an amount of $3.00/mt, a portion of any future sale of the company and/or its assets of 12.5 percent of the sale price if within five years of the close of transaction, or 10 percent of the sale price after five years but before ten years.
In addition, as part of the transaction, the parties agreed to terminate all claims against each other, including their unresolved dispute related to the calculation of a contingent payment obligation arising out of the 2009 transaction in which Mechel obtained the Bluestone assets from the Justice family.