Last checked at 22 Oct 2014 11:00
PRESS-RELEASE
NCSP Group and Metallonivest Signed Agreement of Intentto Facilitate Transshipment of up to 10 million tonnes of Iron Ore per yearand to Build a Specialized Bulk Cargo Terminal
22 October 2014
Novorossiysk Commercial Sea Port Group (NCSP Group or the Group) (LSE: NCSP, Moscow Exchange: NMTP) announces that NCSP Group and Metalloinvest company have concluded an agreement of intent to facilitate export transshipment of iron ore and pig iron in the amount of up to 10 million tonnes per year, and to implement a project of construction of a specialized bulk cargo terminal with access railways and hydraulic structures at the Port of Novorossiysk.
The new terminal may be accommodated on the premises of Novorossiysk Shipyard (a company of NCSP Group), and expected delivery terms of the project are 2015-2018.
«Expanding bulk cargo operations is a strategic priority for NCSP Group, and today this strategy has been back up by cargo traffic expectations. This agreement speaks for convergence of NCSP's and Metalloinvest's interests in the long term», - commented CEO of PJSC NCSP Sultan Batov on the signature of agreement.
«The project is expected to include the construction of a bulk cargo terminal, construction of access railways, and hydraulic engineering works at the Port of Novorossiysk.
We believe the grounds of Novorossiysk Shipyard suit best for construction of this new terminal. Reconstruction of the Novorossiysk rail hub is the mandatory precondition for implementing the project.
At the new terminal NCSP expects to facilitate intake, storage and transshipment of up to 10 million tonnes of bulk cargo by means of its own port infrastructure, utilizing state-of-the-art technology and equipment to guarantee the best cargo handling service», - also highlighted Sultan Batov.
Metalloinvest is interested in utilizing the NCSP's new bulk cargo terminal to organize export of iron ore pellets, hot bracketed iron, and cast iron in the amount of up to 10 million tonnes per year, to the countries of the Mediterranean, North Africa and the Middle East, and the Asia-Pacific regions.
«Signing the new agreement with NCSP builds on many years of our mutually beneficial partnership and shall facilitate further expansion of Metalloinvest's export potential», - said Andrey Varichev, CEO of Managing Company Metalloinvest.
About Metalloinvest
Metalloinvest (www.metalloinvest.com) is a leading global iron ore and HBI producer and supplier, and one of the regional steel producers. The Company has the world's largest iron ore deposits under its operation with the key-note iron ore production cost efficiency.
Metalloinvest is wholly owned by USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (48%), with other beneficiaries - the companies of Vladimir Skoch and Farhad Moshiri - owning 30% and 10%, respectively.
About NCSP Group
NCSP Group is the largest port operator in Russia and the third-largest in Europe, in terms of cargo turnover. NCSP shares are traded on Russia's Moscow Exchange (ticker: NMTP) and on the London Stock Exchange in the form of GDRs (ticker: NCSP). NCSP Group cargo turnover in 2013 totalled 141 million tonnes. Consolidated revenue to IFRS in 2012 totalled USD 928 million and EBITDA was USD 510 million. NCSP Group consolidates the following companies: PJSC Novorossiysk Commercial Sea Port, LLC Primorsk Trade Port, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Ship Repair Yard, OJSC NCSP Fleet, OJSC NLE, OJSC IPP, CJSC Baltic Stevedore Company, and CJSC SFP.
Contacts
Kristina Senko, Public Relations; KSenko@ncsp.com
Mikhail Shchur, Investor Relations; MShchur@ncsp.com
Disclaimer
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