SVST.L Regulatory News (SVST)

31 Jan 2008 07:30

OAO Severstal31 January 2008 SEVERSTAL SELLS TWO MINES, AND ASSOCIATED ASSETS, TO ARCELOR MITTAL OAO Severstal ("Severstal") announced today that it has reached agreement tosell Arcelor Mittal its 97,59% stake in the Beryozovskaya Mine together with its99.35% stake in the Pervomayskaya Mine. Both mines are located in KemerovoRegion, Russia, and produce coking coal. As part of the deal, Severstal will also sell Arcelor Mittal the Severnaya CoalPreparation Plant (part of the Beryozovskaya Mine), 100% of the Zhernovskaya-3deposit and controlling stakes in three companies that provide the mines withtransport, assembly, repair and power supply services(i). Arcelor Mittal will acquire the assets for a total consideration of around $650USD million in cash. Roman Deniskin, General Director of Severstal Resurs, said: "This is a good dealfor Severstal, allowing us to focus on the development of existing,strategically important assets, as well as invest new coal projects." 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 17.6 million tonnes of steel. Severstal Resurs manages Severstal 's mining assets. In 2006 Severstal's Miningdivision produced 5.4 million tons of coal concentrate, 2.2 million tons ofcoking coal, 2.1 million tons of steam coal, 9.5 million tons of iron orepellets and 4.5 million tons of iron ore concentrate. The reserves and resourcesof the company were estimated to be 1.8 billion tonnes of iron ore as at 1January 2006 and 0.7 billion tonnes of coal as at 1 April 2006. Additional Info SeverstalIR Dmitry Druzhinintel. +7 (495) 540 77 66druzhinin@severstal.ru PR Dominic Fry/Tom Murray, Tulchan Communicationstel. +44 (0) 207 353 4200dfry@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