Thomas Verazsto, head of strategy and corporate development for OAO Severstal, said Thursday that the company is interested in acquiring coking coal assets and licenses in the US.
"The U.S. is a major exporter of coking coal, and it has some high-quality assets in the sector," said Verazsto, adding that Severstal is looking at iron ore and coking coal assets around the world as it aspires to transition from a vertically-integrated steelmaker to a diversified company working in steel and its raw materials.
"We think it makes sense," Verazsto said, "as the profitability in coking coal and iron ore has been expanding in the last 15 years, while it was shrinking in steelmaking."
According to company forecasts, Russian steel demand is projected to grow between 3 and 4 percent a year over the next few years provided oil prices don't plunge. In a presentation to investors released Thursday, Severstal said steel demand in Russia will be supported by local automotive production for international carmakers, in addition to Arctic oil and gas projects and national infrastructure spending.