Results of the Board Meeting

18 Dec 2007 09:59

OJSC Magnitogorsk Iron &Steel Works18 December 2007 December 18, 2007 Results of the Board Meeting The meeting of the Board took place on December 14, 2007. The Board consideredseveral issues, including determination of priority guidelines for 2008 andcomposition of MMK executive board. The Board also decided to hold an EGSM on January 21, 2008 in the form ofabsentee voting to approve an interested party transaction. Voting papers willbe collected by January 21, 2008 based on the list of eligible voters as ofDecember 14, 2007. The Board approved of establishing a branch office of MMK in Belgorod regiontitled "Prioskol ore mining and processing plant", which will realize theproject to develop the Prioskol iron ore deposit on the basis of the licenseacquired by MMK at an auction in December, 2006. By means of the branch officeMMK will participate in working out technical, legal and financial issues, whichwill allow accelerating the projecting stage. Going forward the branch may beturned into a separate legal entity. The Prioskol deposit is situated 2000 km away from MMK, it has reserves of 45.2mln tons of high-grade ore and above 2 bln tons of unoxidized ferruginousquartzites. The figures are confirmed by the State Committee for Reserves.According to the plans of MMK construction of Prioskol ore mining and processingplant will begin in 2009 and total production capacity (35 mln tons or crude oreand 15 mln tons of pellets and ore concentrate) reached by 2016. This projectwill allow MMK to be self-sufficient in iron ore taking into consideration itscaptive production and supplies from a controlled company "Bakal miningcompany". Contacts: Press-secretaryElena Azovtsevat: +7 3519 24 90 82E-mail: azovtseva@mmk.ru Head of IREvgeny Kovtunovt: +7 3519 24 93 55E-mail: kovtunov@mmk.ru This information is provided by RNS The company news service from the London Stock Exchange