Russian steelmaker Severstal has announced that it has reached a settlement agreement with the government of Liberia, British mineral exploration and development company Afferro Mining Inc. and Severstal's indirect subsidiary Lybica Holding B.V. regarding tax claims made by the Republic of Liberia in connection with the sale of Afferro's 38.5 percent minority interest in the Putu iron ore project in Liberia to Lybica.
According to the agreement, the parties have agreed that a single payment of $9.75 million be made to the Republic of Liberia as full and final settlement for and release from all tax claims relating to the transaction.
Additionally, Lybica will pay $50 million to Mano River Iron Ore Holdings Limited, a wholly-owned subsidiary of Afferro, pursuant to an amendment to the minority interest sale agreement.