Severstal obtains exploration and development license for Tsentralnyi field in Tyva republic, Russia

Severstal (LSE: SVST; RTS: CHMF), one of the world’s leading vertically integrated steel and mining companies, has obtained a license for further exploration and coal extraction at the Tsentralnyi field in the western part of the Ulug-Khemskiy basin in the Tyva Republic, Russia. This license has been granted by Rosnedra, the Federal Agency of Subsoil Use.

The new license will give Severstal access to an estimated 639 mln tonnes of high quality hard coking coal. Severstal will pay $19.5 mln for the license.

Vadim Larin, CEO Severstal Resources, commented:

“This license is an important strategic development for Severstal Resources, significantly adding to our reserves and our ability to access new markets. It will also create significant number of new jobs in the Tyva Republic region.”