Platts: Russia's Severstal Opts Out of Two Iron Projects to Cut Capex
09/02/2013 - Russian steel and mining group Severstal has withdrawn from further participation in Amapa, its iron ore mining joint venture in northern Brazil with SPG Mineracao, and an iron plant project in North America to cut capital expenditure, chief financial officer Alexei Kulichenko, told a press conference Thursday, Platts reports.
Two years ago, Severstal moved to buy a 25% stake in Amapa from SPG Mineracao, with the $49 million transaction agreed to be paid in instalments.
So far Severstal has contributed $24 million, which guaranteed it about a 10% stake, but now has canceled the remaining transactions. The company is yet to decide whether it will hold to the 10% or divest it.
Severstal has also scrapped plans to establish an iron production plant in North America, a project it considered earlier this year choosing between several sites in Canada and the US and even launched a feasibility study through its 51%-owned International Iron Beneficiation Group…
So far Severstal has contributed $24 million, which guaranteed it about a 10% stake, but now has canceled the remaining transactions. The company is yet to decide whether it will hold to the 10% or divest it.
Severstal has also scrapped plans to establish an iron production plant in North America, a project it considered earlier this year choosing between several sites in Canada and the US and even launched a feasibility study through its 51%-owned International Iron Beneficiation Group…
Click here to continue reading this Platts article.
Source: www.platts.com/latest-news/metals/london/russias-severstal-opts-out-of-two-iron-projects-26228794
Source: www.platts.com/latest-news/metals/london/russias-severstal-opts-out-of-two-iron-projects-26228794
