Severstal sells two mines

Severstal announced today that it has reached agreement to sell Arcelor Mittal its 97,59% stake in the Beryozovskaya Mine together with its 99.35% stake in the Pervomayskaya Mine. Both mines are located in Kemerovo Region, Russia, and produce coking coal.

As part of the deal, Severstal will also sell Arcelor Mittal the Severnaya Coal Preparation Plant (part of the Beryozovskaya Mine), 100% of the Zhernovskaya-3 deposit and controlling stakes in three companies that provide the mines with transport, assembly, repair and power supply services .

Arcelor Mittal will acquire the assets for a total consideration of around $650 mln in cash.

Roman Deniskin, General Director of Severstal Resurs, said: “This is a good deal for Severstal, allowing us to focus on the development of existing, strategically important assets, as well as invest new coal projects.”