Russian steel and coking coal producer Mechel may sell up to 25 percent of its mining business to a strategic partner, following recommendations by its board of directors, Mechel said on Tuesday.
Mechel’s Board of Directors held a meeting on September 21, 2012 to discuss measures on restructuring the group’s assets to improve the company’s financial performance and increase its shareholder value, in view of its revised strategy approved in May this year.
“In order to speed up implementation of the mining division’s priority project – the development of the Elga coal deposit — the Board of Directors recommended evaluating the possibility of a potential divestment of a minority stake in Mechel Mining to a strategic partner (but such stake not to exceed 25 percent),” the board said.
Mechel is one of the leading Russian companies with its business focused on mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, and also heat and electric power. Mechel markets its products domestically and internationally.
