IES-Holding to sell Kachkanarsk CHP to Evraz
MOSCOW. Oct 25 (Interfax) - Integrated Energy Systems (IES) Holding has signed an agreement with Evraz Group for the sale of Kachkanarsk Combined Heat and Power Plant (Kachkanarsk CHP, based in the Sverdlovsk Region and part of the generating company OJSC TGK-9 ) to OJSC Evraz Kachkanarsk Mining and Enrichment Plant (Evraz KGOK), IES Holding said in a statement.
The power holding plans to close the acquisition at the end of December.
The CHP's installed capacity comes to 50 megawatts. The station is located at KGOK's production complex. Evraz will look into reconstructing the CHP in order to boost its production capacity.
Evraz and IES Holding have yet to release the cost of the transaction.
The sale of the CHP has been under consideration for a long time, IES told Interfax. KGOK is the sole consumer of Kachkanarsk CHP's electricity. The sale of the generating assets has no relation to the IES-Holding and LLC Gazprom Energoholding's (a subsidiary of Russian gas giant Gazprom ) planned merger of electricity assets, which is now under preparation, or possible sanctions from the Federal Antimonopoly Service (FAS), IES said.
"The sale of the Kachkanarsk CHP to the GOK is a logical step since the station was initially built for the plant's needs. Furthermore, the station was loss-bearing for IES during the summer. After it is transfer to Evraz KGOK's balance sheet, output might be balanced for the winter and summer," IES Holding's deputy general director, Roman Nizhankovsky, was quoted as saying in the statement.
IES Holding also quoted Evraz's vice president and head of its mining division, Konstantin Lagutin, who said that the metallurgical enterprise plans to maintain the CHP's heat capacity at its current level. "All electricity produced by the CHP goes the plant's needs whereas heat is supplied to the city of Kachkanar. After the CHP is transferred to Evraz's property, heat supply to Kachkanar will be maintained at the same level," Lagutin was quoted as saying in the IES statement.
Evraz Group's enterprise Kachkanarsk GOK is one of the five leading mining and enrichment plants in Russia. The plant currently is mining ore with vanadium content at the Gusevogorsky field. The main consumers of the plant's production are Evraz's metallurgical enterprises.
Integrated Energy Systems (IES), part of Viktor Vekselberg's Renova, holds strategic/controlling stock interests in and manages four generating companies - TGK-5 , TGK-6 , TGK-9 , and TGK-7 - with combined generating capacity of about 16 gWt. Renova and Gazprom are preparing to merge their electricity assets at Gazprom Energoholding.
