By RIA Novosti
Moscow : Severstal, a leading Russian steel producer, said Thursday it had signed a $650 million deal with ArcelorMittal to sell two west Siberian coalmines to the world’s largest steel company.
Under the deal, Severstal, which is an international mining and steel company that produced 17.6 million tonnes of steel in 2006, will sell ArcelorMittal its 97 percent stake in the Beryozovskaya mine along with its 99 percent stake in the Pervomaiskaya mine.
Both mines are located in the Kemerovo Region and produce coking coal, the steel maker said.
“This is a good deal for Severstal, allowing us to focus on the development of existing, strategically important assets, as well as invest in new coal projects,” said Roman Deniskin, general director of Severstal Resurs, which manages the company’s mining assets.
In 2007, the Beryozovskaya and Pervomaiskaya mines produced a total of 1.77 million tonnes of coking coal concentrate, Severstal said.
ArcelorMittal, the world’s largest metals holding company headed by Indian born L. N. Mittal , controls 10 percent of global steel output. The company was formed through the merger of Arcelor and Mittal Steel in 2006.