Magnitogorsk Iron and Steel Works Ensured Coal Independence

20.10.2009 — News

THE CHELYABINSK OBLAST.

OAO Magnitogorsk Iron and Steel Works (MMK) has acquired 82.6% of shares in the manufacturer of coal and coal concentrate PJSC Belon. These shares are owned by Onarbay Enterprises Ltd; MMK became the sole owner of this company after purchasing 50% of shares from Sapwood Investments Ltd. 

The company informed RusBusinessNews that this deal will cover the most of MMK's demand for the coking coal concentrate and give additional competitive advantages in the current situation and in the long term.

PJSC Belon produced 5,523 thousand tons of coal, including 2,889 thousand tons of coking coals. According to the Russian Accounting Standards Reporting Belon's revenue amounted to 1 billion 125 million US dollars, net profit - 124 million roubles in the previous year. In 2009 the company is planning to increase coal production by about 30%.