ArcelorMittal Buys Russian Coking Coal Assets


ArcelorMittal has completed its previously announced acquisition of three coal mines and associated assets in Russia for $718 million.

The company has acquired a 97.9% stake in the Berezovskaya mine together with a 99.46% stake in the Pervomayskaya mine from Severstal. Both mines produce coking coal and are located in the Kemerovo Region.

As part of this agreement ArcelorMittal has acquired the exploration and mining rights to the Zhernovskaya-3 coal deposit. It also acquired the Severnaya prep plant which is part of the Berezovskaya mine and three companies that provide the mines with associated services. Additionally, it has completed its acquisition of 100% of the Anzherskoye mine in the Kemerovo Region.

Annual production from the three operating mines, which have a combined estimated total reserve of more than 140 million mt, was 3.14 million tons of raw coal in 2007. The Zhernovskaya-3 coal deposit has an additional estimated reserve of 46 million mt. In 2007, the Beryozovskaya and Pervomayskaya mines produced 1.77 million tons of coke.


As featured in Womp 08 Vol 4 - www.womp-int.com