MMK has purchased a hard coal mine in the Kemerovo region from IMH

MOSCOW, July 20 (Reuters) – Russian steel producer MMK has acquired a coal mine in the Kemerovo region from IMH Group company Koks, the parties said.

kick them. Tichowa with a production of about 1.3-1.5 million tons per year with long-term plans to expand to 2.8 million tons per year is located near the active MMK – Kostroma mine.

MMK, one of the largest steel producers in Russia, supplies 40% of its own coking coal and approximately 17% of iron ore.

“The purchase of the mine will allow MMK-Ugol to ensure full loading of the Belovskaya central processing plant with its own coal and increase the profitability of the company,” the report reads.

The Tikhoi mine produces 2Zh class coal, which has some of the best technological properties for fatty coking coals.

The amount of the transaction was not disclosed. However, when IMH asked its Eurobond holders for approval of the deal in May 2023, IMH said it expected to receive at least 22 billion rubles for the mine, including intra-group loans. The holding company planned to allocate these funds to repay the debt.

“The sale of the mine will be an opportunity to focus on the development of the iron ore base, the production of products with high added value, as well as the introduction of “green” technologies. In addition, the transaction will optimize operating and investment costs, improve the financial and economic results of the IMH Group, said Alexei Parshukov, senior vice president of IMH, whose words are quoted in the release. (Anastasia Lyrchikova. Edited by Oksana Kobzeva)