Evraz sells Koksovaya coal company to Raspadskaya

 

TIDMEVR 
 
RNS Number : 0187L 
Evraz Group S.A. 
29 April 2010 
 

              Evraz sells the Koksovaya coal company to Raspadskaya 
 
29 April 2010 - Evraz Group (LSE: EVR) ("Evraz") announces the closing of the 
transaction to sell 100% of the voting shares of ZAO Koksovaya ("Koksovaya"), a 
wholly owned subsidiary of Evraz's Yuzhkuzbassugol, to ZAO 
Raspadskaya-Koksovaya, part of OAO Raspadskaya coal company (both hereinafter 
referred to as "Raspadskaya").The transaction amount is not disclosed. 
 
Koksovaya's coal reserves amount to 152 million tonnes of coal (grades K and KO 
under the Russian classification equivalent to hard coal under the international 
classification). These reserves form part of a coal field. Raspadskaya owns 
another part of this coal field and is currently in the process of constructing 
a coal mine on it. 
 
The sale of Koksovaya to Raspadskaya is in the interests of both companies, as 
the coal field will be developed according to a single plan using the 
Raspadskaya infrastructure. In order to develop the coal fields separately, 
additional capex would be required and there would be a lack of synergies in the 
mining works. 
 
As part of the transaction, a 10-year contract will be concluded in May for the 
supply of a certain volume of coal mined by Koksovaya and Raspadskaya-Koksovaya 
to Evraz's companies, in particular to its Russian steel mills and Ukrainian 
coke chemical plants. 
 
                                      ### 
 
Note: Evraz Group holds a 40% effective interest in OAO Raspadskaya 
 
 
For further information: 
 
Media contact: 
 Alex Agoureev 
 VP, Public Relations 
+7 985 
122 4822 
[e-mail] 
 
Investor contact: 
 Alexander Boreyko 
 Director, Investor Relations 
 +7 
495 232 1370 
[e-mail] 
 
 
 
Evraz Group S.A. is a large vertically-integrated steel, mining and vanadium 
business with operations in the Russian Federation, Ukraine, Europe, USA, Canada 
and South Africa. The Company was ranked the 15th largest steel producer in the 
world based on crude steel production of 17.7 million tonnes in 2008. In 2009, 
Evraz produced 15.3 million tonnes of crude steel and sold 14.3 million tonnes 
of steel products. Evraz's internal consumption of iron ore and coking coal is 
fully covered by its mining operations. Evraz's consolidated revenues for the 
year ended 31 December 2009 were US$9,772 million and consolidated adjusted 
EBITDA amounted to US$1,237 million. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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