Metalloinvest acquires 19.9 % stake in Mt Gibson

The Russian iron ore and steel producer Metalloinvest Holding (Metalloinvest), controlled by Mr. Alisher Usmanov, has acquired a 19.9 percent stake in Australian Mount Gibson Iron (Mt Gibson) for $98.8 million from London-based Cambrian Mining. Mt Gibson is currently in a bid for its rival Aztec Resources (Aztec), the deadline of which was extended for a fifth time last Friday. Metalloinvest bought the stake just days after Shanghai Merchant Holding had claimed a major role in the takeover battle between Mt Gibson and Aztec, by buying a 10 percent stake in the former and a seven percent stake in the latter. One of several companies currently trying to expand their Mid-West iron ore operations, Mt Gibson is aiming to increase its production from around five million metric tons to 50 million metric tons. After its latest move, it is believed that Metalloinvest will now play a key role in the consolidation of the Mid-West iron ore sector.