19th Sep 2013 07:58
LONDON (Alliance News) - Evraz PLC Thursday said it will sell its Evraz Vysokogorsky iron ore mining and processing plant to NPRO URAL for USD20 million on a debt free basis, putting about USD12.4 million into the unit as part of the sale so that it has some working capital.
It said the price will be paid in installments, with USD5 million on completion and the rest in equal installments over the next two years.
Under the deal, the Vysokogorsky plant will continue to supply iron ore concentrate to Evraz for three years at market prices, and the plant will process some Evraz by-products under a ten-year agreement.
"(The plant) has become a non-core asset for the group, as the iron ore requirements of Evraz NTMK are fully met by cheaper supplies from EVRAZ KGOK, while the output of (the plant) can be re-directed to the Urals' regional market," the company said in a statement. "The sale of VGOK represents one step in the ongoing process of optimising our iron ore assets."
Evraz shares were up 2.9% at 138.852 pence early Thursday, as mining stocks rose sharply in the wake of a US Federal Reserve decision to keep pumping money into the US economy at the same rate as that last few years.
The company Wednesday sold a heat and power station in Russia, as it continues to sell non-core assets.
By Steve McGrath; [email protected]; @SteveMcGrath1
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