Russian mining and steel group Mechel is negotiating the sale of a part of its stake in Elgaugol, which owns a license for development of the largest coking coal deposit in Yakutia in Far Eastern Russia, the Russian information agency ITAR-TASS has reported.
According to the sources, South Korean steel giant POSCO and major Chinese steel producer Baosteel are interested in the purchase of a stake in the Elginskoye deposit.
According to executive secretary of the Russian-Chinese chamber, Sergei Sanakoev, the negotiations of Baosteel with Mechel have lasted for a half of year already. The Chinese company is interested in purchasing a 26-50% stake in the Eginsky project. At the same time, Baosteel is interested not only in the purchase of a stake in Elgaugol, but also in the joint development of infrastructure, including the construction of a terminal with an annual 3 million mt capacity at the port of Vanino.