Usmanov expands on his Russian mining merger vision

Metalloinvest main shareholder Alisher Usmanov has taken the initiative from rival oligarchs Oleg Deripaska and Vladimir Potanin by proposing several alternatives to the powerful duo’s original mega merger plan.

Norilsk Nickel’s main shareholders, Deripaska and Potanin, have proposed a merger that would include Usmanov’s Metalloinvest, Roman Abramovich’s Evraz Group, Igor Zyuzin’s Mechel and Dmitry Ribolovlev’s potash producer, Uralkali.

Usmanov still favours a tie-up solely between his own iron ore and steel producer, Metalloinvest, and Norilsk Nickel. But he has now named Igor Zyuzin’s Mechel and state-run diamond miner Alrosa as candidates to join the company later on, subject to shareholder agreement.

“If the Russian government would participate in this merger and restructure the debts of the companies everybody would win from it,” said Usmanov.

As an alternative to the merger, Usmanov suggested that his company could work with the government through the Rostechnologii state corporation taking a 25% stake in Metalloinvest’s Udokan copper field project.