MMK.L Regulatory News (MMK)

5 Feb 2008 08:49

OJSC Magnitogorsk Iron &Steel Works05 February 2008 MMK Becomes a Direct Owner of a 50% Interest in ZAO Kazankovskaya Coal Company OJSC MMK has acknowledged transfer of title to a 50% share package of ZAOKazankovskaya Coal Company from OOO MetAl. The transfer occurred as part of the procedure of a voluntary liquidation of OOOMetAl, a 100% subsidiary of OJSC MMK. The 50% package, earlier owned by MetAl,was transferred to OJSC MMK as the only participant in the company underliquidation. The liquidation of OOO MetAl is taking place in the context of a plan tooptimize the MMK Group's structure for the purpose of improving the efficiencyof the Group's assets management. -------------------------------------------------------------------------------- Additional Information: The Magnitogorsk Iron & Steel Works OJSC (IIE) ranks 20th among the world'slargest steel producers (Source: IISI) and is one of the leaders of Russia'ssteel industry (Source: Chermet). The company is a large steel producing complexencompassing the entire production chain, from preparation of iron ore todownstream processing of rolled steel. IIE turns out a broad range of steelproducts with a predominant share of value added goods. In 2006 the Companyproduced 12.5 m tonnes of crude steel and 11.3 m tonnes of commercial products.In 2006 sales under US GAAP amounted to USD 6.4 bn, with net profit standing atUSD 1.4 bn. In 2007 MMK produced 13.3 million tons of crude steel and 12.2milion tons of commercial steel products. ZAO Kazankovskaya Coal Company is a coal mining enterprise located in theKemerovo Region and owned on a parity basis by OJSC MMK and ZAO YuzhkuzbassugolCoal Company. Among the assets of ZAO Kazankovskaya Coal Company is theTagaryshskaya Coal Mine with 40 million tons of grade G coal reserves whichproduced 926,000 tons of coal in 2007, and a license for mining the Kureinskysection of the Kureinsky Coal Field with prospected reserves of 425 million tonsof K, KS, OS and TS grades' coals. Contact persons for additional information: Press secretary: Elena Azovtseva Phone: +7 3519 24 90 82 E-mail: azovtseva@mmk.ru Head of Investor Relations : Evgeny Kovtunov Phone: +7 3519 24 93 55 E-mail: kovtunov@mmk.ru This information is provided by RNS The company news service from the London Stock Exchange