SVST.L Regulatory News (SVST)

10 Apr 2008 07:00

OAO Severstal10 April 2008 SEVERSTAL COMPLETES THE SALE OF TWO MINES, AND ASSOCIATED ASSETS, TO ARCELOR MITTAL Further to the announcement on 31st January 2008, OAO Severstal announces todaythe completion of the sale to ArcelorMittal of its 97.9% stake in theBeryozovskaya Mine and its 99.46% stake in the Pervomayskaya Mine. As part ofthe deal, Severstal also sold to ArcelorMittal the Severnaya Coal PreparationPlant, 100% of the Zhernovskaya-3 deposit and controlling stakes in threecompanies that provide the mines with transport, assembly, repair and powersupply services(i). Arcelor Mittal acquired the assets for a total considerationof $651.8 USD million in cash. For reference: In 2007, the Beryozovskaya and pervomayskaya produced 1.77 million tons ofcoking coal concentrate. OAO Severstal is an international mining and steel company. Severstal focuses onhigh value-added and unique niche products and has a successful track record ofacquiring and integrating high-quality assets in North America and Europe.Severstal owns mining assets in Russia, thus securing its supplies of rawmaterials. In 2006 Severstal produced 17.5 million tones of steel. Severstal Resurs manages Severstal's mining assets. In 2007 Severstal's Miningdivision produced 5.8 million tons of coal concentrate, 1.8 million tons ofcoking coal, 2.1 million tons of steam coal, 10.0 million tons of iron orepellets and 4.6 million tons of iron ore concentrate. Additional Info Severstal IR Dmitry Druzhinintel. +7 (495) 540 77 66; druzhinin@severstal.ru PR Dominic Fry/Tom Murray, Tulchan Communicationstel. +44 (0) 207 353 4200; dfry@tulchangroup.com; tmurray@tulchangroup.com -------------------------- (i) OAO Severokuzbasskoe pogruzochno-transportnoe upravlenie (North-Kuzbass loadand transport department), OAO Angero-Sudzhenskoye pogruzochno-transportnoeupravlenie (Angero-Sudzhensk load and transport department) and OAOSpetsializirovannaya shakhtnaya energomekhanicheskaya kompaniya (Special mineenergie and mechanical company) This information is provided by RNS The company news service from the London Stock Exchange