Last checked at 15 Oct 2013 07:06
EVRAZ enters agreement to sell Gramoteinskaya thermal coal mine
15 October 2013 - EVRAZ plc (LSE: EVR) ("EVRAZ") announces that it has signed a binding agreement for the sale of the Gramoteinskaya thermal coal mine, part of its wholly-owned subsidiary Yuzhkuzbassugol Coal Company, to Lehram Capital Investments Ltd. for RUB10,000 cash consideration, calculated on a debt free basis.
The disposal is in line with EVRAZ's plan of divesting non-performing assets. The Company is focusing on the development of coking coal mines important for securing the access to raw materials in steelmaking while the thermal coal mining business is non-core to the strategy.
The Gramoteinskaya mine has a design capacity of 2.5 million tonnes per annum of thermal coal and is located 100 km north of Novokuznetsk, Kemerovo region, Russia. The mine produced and exported thermal coal until mining operations were suspended in Q4 2012. Operations have not recommenced since then.
As at 30 June 2013, Gramoteinskaya mine had gross assets of US$13 million. For the year ended 31 December 2012, the mine produced a loss before tax of US$19 million.
EVRAZ will apply the proceeds from the sale for general corporate purposes.
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For further information:
Media Relations:
Vsevolod Sementsov
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871
media@evraz.com
Investor Relations:
Sergey Belyakov
Director, Investor Relations
London: +44 207 832 8990 Moscow: +7 495 232 1370
ir@evraz.com
EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy and South Africa. EVRAZ is among the top steel producers in the world based on crude steel production of 15.9 million tonnes in 2012. In 2012 EVRAZ sold 15.3 million tonnes of steel products. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2012 were US$14,726 million, and consolidated EBITDA amounted to US$2,012 million. The H1 2013 consolidated revenue was US$7,362 million and the H1 2013 EBITDA was US$939 million.