The current year to be difficult for companies in mining and metallurgical industry in Russia and the CIS

In 2014,an improvement in the economic situation in the mining and metallurgical industry will promote a growth of transactions in the M&A market of this industry, which is recovering after the lowest indicators of activity in the last seven years.

According to the EY study "M&A transactions and attraction of investments into the mining and metallurgical industry: trends of 2013 and 2014", in 2013 the low activity was observed on the M&A market in the industry. Excluding the merger of Xstrata and Glenore, the number and value of M&A transactions fell by 25 % and 16% to 702 transactions and $87.3 billion dollars respectively. This is the smallest rates of deals number in the sector since 2006 and their value since 2009.

A similar trend was observed in the market of capital attraction: the number of listings declined by 9% to the lowest rate since the global financial crisis in 2008, while the volume of borrowing grew by $272 billion, which was a result of loans refinancing in emergencies.