Diamonds, Iron ore

ALROSA is looking for buyers for its stake in the joint venture with Evraz

ALROSA intends to leave the Timir Yakut iron ore project, which it planned to implement together with Evraz.

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Ore falters under "Timir".

The government of Yakutia are dissatisfied with the company.
The government of Yakutia once again threaten iron ore MMC "Timir", the joint company of Evraz and Alrosa, with the withdrawal of the license for the Taiga deposit with reserves of 1.4 billion tons of ore. They were not satisfied that "Timir" still did not name clear parameters of Taiga development, in fact abandoning previous plans for large-scale construction of the steelmaker in the republic. But finding other investors for the project will be difficult, the experts state.

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Alrosa will be inspected

The Ministry of Finance, the Federal Agency for State Property Management and the Accounts Chamber willinitiate a complex inspection of Alrosa. They will check several large transactions of the company including its IPO in 2013. The inspection is sanctioned by the President of Russia V. Putin, and the initiative was made by the Vice Premier Y. Trutnev overseeing Alrosa. The destiny of the chief of the company F. Andreyev will depend on the results of the inspection; Mr. Trutnev seeks for his dismissal.
A source close to the situation has told about the order of Mr. Putin to hold the complex inspection of Alrosa. It was confirmed by one more source in the presidential administration. One of them claims that under the results of the inspection, the authorities will decide whether the President of Alrosa F. Andreyev will keep his post. The order is called ‘About the personnel affairs of Alrosa’; the document was signed on August 30th, the source claims. He refuses to state the period of the inspection or any other details, referring to confidentiality of the document.
A source of Kommersant in the Government claims that the inspection was initiated by Y. Trutnev who sent to the President a letter with explanation of his unwillingness to sign the directive about re-appointment of the chief of Alrosa. Mr. Trutnev doubts effectiveness of F. Andreyev as the chief of the company and suggests to inspect reasonability of the large transactions, the source states. A source in the related department confirms the fact of the letter. The sources of Kommersant claim that Mr. Putin supported the initiative and appended instructions that the personnel affairs of Alrosa should be solved after the complex inspection of the company by the Ministry of Finances and the Federal Agency for State Property Management with attraction of the Accounts Chamber. All the sides refused to give any comments yesterday.

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Vladimir Putin has called for Evraz to return to Yakutia project

Vladimir Putin has called for the company to return to the project in Yakutia.
The revival of the metallurgical market, which has allowed many Russian steelmakers return to profit, can lead to problems for Evraz. Vladimir Putin has clearly reminded the company of its commitment to build a plant costing $ 4 billion in Yakutia. Evraz’s co-owner has agreed to "take another look" at the project, but he still can not see the prospects of it, and analysts agree.
Yesterday at a meeting on state and priority investment areas in the Far East the RF President, Vladimir Putin asked Alexander Abramov, the head of the board and co-owner of Evraz, to return to the project of the building of a steel plant in Yakutia based on the iron ore deposits of JSC "MMC "Timir"" (Evraz owns 51%, ALROSA – 49% minus 1 share).

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Even more yuan hunters.

"Timir", "Intergeo" and the Silver Bear are waiting for the Chinese investors.
As "the Kommersant" informed the number of Russian companies willing to attract the Chinese partners for the implementation of the new mining projects included MMC "Timir", "Intergeo" and the Silver Bear. However, in all three cases the concrete negotiations with the investors have not yet been reached. A surge in interest in the investments from China began in spring, after the cooling of relations between Russia and the West, but few so far managed to negotiate with the Chinese.

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VEB to support Evraz in ore.

The state corporation can finance the development of "Timir".
VEB can finance The Yakut "Timir" iron ore project, implemented by Evraz and Alrosa. Yegor Borisov, the Acting head of Yakutia, asked the state corporation to support the project by providing $ 180 million. VEB is already considering the application of the GC "Timir". At the first stage the project is justified by the needs of the Evraz’s West Siberian Metallurgical Plant, but its profitability while expanding is not so obvious.
Earlier in the week Yegor Borisov, the Acting head of Yakutia, asked Vladimir Dmitriev, the head of Vnesheconombank, to support the first stage of the "Timir" iron ore project in the country, two sources of "the Kommersant" familiar with the contents of the official’s letter stated. JSC "MMC "Timir"" owning four iron ore deposits in Yakutia, are part of Evraz (51%) and ALROSA (49% minus 1 share), VEB owns one share, representing the interests of the state. The balance reserves of all "Timir" fields are about 5 billion tons of ore. According to "the Kommersant" sources, Yegor Borisov asks VEB to allocate the project funding to develop the Taiga deposit with the reserves of 680 million tons of ore and construction of the mining and processing plant. This project is important for the country, according to the interim head of Yakutia it will increase the GDP by 3% and will provide 600 million roubles in tax payments per year only on the first stage.

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Evraz transferred 1.028 bln roubles to Alrosa in the framework of the deal on GMK Timir purchase

The rest of the debt is 1.98 bln roubles.
Evraz has transferred 1.028 bln roubles to Alrosa in the framework of the deal on the purchase of 51% of shares in GMK Timir OJSC that comprises 990 mln roubles as a settlement of the debt and interest for the unsettled amount, Alrosa reports.
Today the rest of the debt is 1.98 bln roubles and is to be paid in equal tranches of 990 mln roubles each in 2015-2016, it is reported.

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ALROSA demands Evraz to pay its debt for Timir

Evraz didn’t manage to coordinate a delay of the payment of 2.97 billion rubles for the stake in the iron ore company Timir until 2016  with ALROSA. As the Kommersant has got to know, the diamond mining company demanded for prompt payment of about 1.5 billion rubles and the penalty interest (Libor + 5 % for each day of delay) from its  project partner. Sources of the Kommersant believe that the parties still have a change to agree, but analysts doubt the reasonability of this.
A source that is close to one of the parties reported to the Kommersant about the ALROSA’s demand for repay a part of the debt for a stake in Timir (operator of an iron ore project in Yakutia) from Evraz. According to him, ALROSA’s president Fyodor Andreev sent a corresponding letter to Evraz Plc (the parent company), registered in London. "The seller was to transfer a second partial payment in the amount of 1.485 billion rubles before April 10, 17:00 of Moscow time, but it didn’t do this," - he said, added that the Andreev’s letter was dated April 11. In addition to the immediate payment of this amount, ALROSA requires to transfer penalty interests (Libor + 5 % for each day of delay), he added

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Evraz invests more than 9 bln roubles into iron ore production in Yakutia

A mining-and-smelting company Evraz Plc is about to invest more than 9 billion roubles into the iron ore deposit in Yakutia “Taezhnoye” before 2017. The vice-president of the company for large-scale projects, chief executive of the division “Ruda” M.Atnashev said about it to ITAR-TASS. “The construction of the Taezhny GOK will start next year, an implementation of the project is planned for 2016 and an attainment of the projected capacity in 2017,” he said.
Full-scale development of the deposit will approximately need 60 billion roubles, according to Atnashev. “There necessary 9 billion roubles of investment for the next three years,” he said.

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Criteria for gold sites may be increased to 250 tons

A draft law to increase the criteria of sites rating as areas of federal importance to 250 tons has been introduced.
A draft law on specification of criteria of subsoil areas rating as sites of federal importance is coordinated now, the Deputy Minister of Natural Resources Denis Khramov reported during his visit to Canada to the World Mining Congress, which unites specialists and scientists from different countries, who work in the field of solid mineral deposits development.
“In our opinion, it’s necessary to increase the criteria of sites rating as areas of federal importance to 250 tons from the current 50, because gold deposit with 50 tons of reserves, discovered in a distant district, doesn’t cover costs for its development, - Denis Khramov noted. According to him, in the future the attribution of subsoil areas to the federal importance won’t be based on forecasted assessment of resource potential, but will be carried out after the entering of minerals reserves on the balance sheet”.

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