Mechel wants to buy Kureinsky section in Kuzbass from Evraz, MMK - newspaper
MOSCOW. Aug 29 (Interfax) - Russian mining and steel group Mechel wants to buy the Kureinsky section in Kuzbass, which borders with Southern Kuzbass' (part of Mechel) Sibirginsky open pit mine, from Evraz and OJSC Magnitogorsk Iron & Steel Works (MMK) , the newspaper Kommersant reported with reference to unnamed sources.
The Kureinsky section is the chief asset of coal company Kazankovskaya, which belongs to MMK and Evraz group. Its co-owners believe the section's development to be unprofitable, although a deal might occur only next year, Kommersant wrote.
First and foremost, the companies need to convince the Russian Federal Subsurface Resources Agency (Rosnedra) to change the terms of the license and reassign it to a subsidiary of Kazankovskaya, since Mechel does not need its second asset (the already shut down Tagaryshskaya mine). Kazankovskaya has already made several attempts to alter the terms of the license, but it has been rejected each time for various reasons. Now, according to Kommersant's sources, the company is preparing a new appeal to Rosnedra asking that it shift the main timeframes of work at the deposit by five to six years.
Combined reserves at the Kureinsky section are estimated at 365 million tonnes of coal, while recoverable coking coal reserves (grades KC and OC) are roughly 60 million tonnes.
