Novolipetsk Steel (NLMK) agrees to sell KMA Ruda.
This divestment is in line with the previously announced internal restructuring plan. One of key steps of the restructuring plan is optimizing the asset portfolio of NLMK. At the moment the Company’s strategy is oriented towards the development of its key iron ore asset, Stoilensky GOK (SGOK). Stoilensky GOK meets 100% of NLMK’s iron ore concentrate requirements. The Stoilensky GOK’s development program is closely correlated with NLMK’s development program to meet steel segments’ iron ore concentrate demand in the future.
Proceeds from the transaction will be directed to financing NLMK’s investment projects, including the Stoilensky GOK’s development program. As we stated earlier, the active management of our asset portfolio is an integral part of NLMK’s growth strategy and strengthening our market leadership.
KMA Ruda is a mining company located within 350 kilometers of NLMK’s production facilities in Lipetsk. KMA Ruda supplies iron ore concentrate, with the annual amount of production of 1.8 million tones.