Severstal Resurs and Corus have signed a three-year agreement for the supply of iron ore pellets

Severstal Resurs will supply blast furnace pellets to Corus from its production unit, Karelsky Okatysh, located in Karelia Republic of Russia.

The contract covers the sale of 3 million tons of iron ore pellets over a three-year period.

Severstal and Corus have been working together since 2004.

Severstal Resurs leads all of Severstal's mining operations. Severstal Resurs consists of four high-quality mining complexes in northwest Russia and in Western Siberia producing iron ore and coking coal and is the second largest producer of pellets and coking coal in Russia.

In 2006 Severstal's Mining division produced 5.4 million tons of coal concentrate, 2.2 million tons of coking coal, 2.1 million tons of steam coal, 9.5 million tons of iron ore pellets and 4.5 million tons of iron ore concentrate. The reserves and resources of the company were estimated by IMC Limited to be 1.8 billion tonnes of iron ore as at 1 January 2006 and 0.7 billion tonnes of coal as at 1 April 2006. The scrap business of Severstal Resurs consists of а number of scrap metal yards in the Northwestern, central and Southern parts of Russia. The total processing capacity is 1,3 million tonnes of scrap per year. Scrap is delivered to Europe and Middle East through the ports of St. Petersburg, Murmansk, Arkhangelsk, Rostov and Taganrog.