3 May 2024 21:40

Coeclerici says seeking strategic partner for coal miner Kuznetskinveststroy, no agreement on sale

BAKU. May 3 (Interfax) - Coeclerici Commodities S.A., which owns 100% of coal miner JSC Kuznetsk Investment and Construction Company, or Kuznetskinveststroy, from Russia's Kemerovo region, is seeking a strategic partner for the company, the company told Interfax.

"Coeclerici Commodities S.A. has been seeking a qualified Russian partner for several years for the joint development and business expansion of Kuznetskinveststroy. The search for such a partner is ongoing," says an official letter from Coeclerici, seen by Interfax.

Several sources told Interfax on Thursday that Moscow-based Okto Coal LLC was acquiring Kuznetskinveststroy. Coeclerici denied this.

"Coeclerici Commodities S.A. owns 100% of the shares in Kuznetskinveststroy, and the company continues to operate under its Russian management," the letter says.

It also says that in accordance with Russian legislation, "any changes in the ownership structure of Kuznetskinveststroy can only be made on the basis of a decision of the Russian president.

"The company retains all production facilities and jobs, and is also honoring all social programs and obligations approved in Kuzbass," the letter says.

Coeclerici Group said on its website earlier that that the group "has ceased to carry out all management and coordination activities" related to Kuznetskinveststroy "due to the Russian-Ukrainian conflict."

"The Russian company that owns the mine continues to operate under local management, preserving jobs and commitments to local communities," the website says.

Kuznetskinveststroy's only upstream asset is the Korchakolsky strip mine, which produces T and KS grades of coal, which are used to produce pulverized coal for metallurgy.