UMMC might acquire Petropavlovsk, files application with regulator - paper
MOSCOW. May 23 (Interfax) - Ural Mining and Metallurgical Company (UMMC), one of Russia's largest producers of nonferrous metals, is considering acquiring gold miner Petropavlovsk , national daily Kommersant reported on Monday, citing sources.
UMMC has filed such an application with Russia's Federal Antimonopoly Service (FAS), one of the sources said. UMMC might also buy other assets in the gold mining sector, another source said. UMMC, Petropavlovsk and its shareholders refrained from comment.
UMMC earlier acquired the rights to claims against Petropavlovsk on a $201 million loan, plus interest, from Gazprombank .
The company has recently stepped up its M&A activity. Among other things, it considered buying gold miner GV Gold, but the parties could not agree on a price.
UMMC, which specializes primarily in copper and zinc production, already mines about 4.8 tonnes of associated gold per year, the Russian Gold Producers Union estimated, without including possible processing of feedstock on a tolling basis. UMMC announced in mid-March that Iskander Makhmudov and Andrei Bokarev were no longer the company's controlling shareholders, but it did not disclose the new shareholder structure.
Petropavlovsk, which mines gold ore deposits in Amur Region, is one of Russia's top five gold producers. Uzhuralzoloto Group of Companies (UGC), which is controlled by Konstantin Strukov, remains Petropavlovsk's largest shareholder with about 29%.