EVRAZ plc announces that it has signed a binding agreement for the sale of the Gramoteinskaya thermal coal mine, part of its wholly-owned subsidiary Yuzhkuzbassugol Coal Company, to Lehram Capital Investments Ltd. for RUB10,000 cash consideration, calculated on a debt free basis.
The disposal is in line with EVRAZ’s plan of divesting non-performing assets. The Company is focusing on the development of coking coal mines important for securing the access to raw materials in steelmaking while the thermal coal mining business is non-core to the strategy.
The Gramoteinskaya mine has a design capacity of 2.5 million tonnes per annum of thermal coal and is located 100 km north of Novokuznetsk, Kemerovo region, Russia. The mine produced and exported thermal coal until mining operations were suspended in Q4 2012. Operations have not recommenced since then.
As at 30 June 2013, Gramoteinskaya mine had gross assets of US$13 million. For the year ended 31 December 2012, the mine produced a loss before tax of US$19 million.
EVRAZ will apply the proceeds from the sale for general corporate purposes.