Evraz Intends to Close the Deal on Acquisition of 51% in Timir Project Shortly

Evraz Plc expects closing transaction concerning acquisition of 51% stake in iron ore project Timir from OJSC AK ALROSA soon, according to a statement by Evraz Vice President on large-scale projects Marat Atnashev speaking during teleconference, RIA Novosti reported.
“The deal between ALROSA and Timir is approaching to approval stage at the federal government level. There was certain delay related, inter alia, to change of the cabinet, but the process has accelerated after that. We were able to understand all issues and concerns of the government related to the above project, we provided our response to that and now we expect to receive governmental approval to finalize the transaction,” - Atnashev noted.
In September 2011 AK ALROSA and Evraz signed agreement establishing a joint venture aimed at development of Timir iron ore project. Evraz was supposed to acquire 51% stake in Timir Mining and Metallurgical company from the diamond mining giant which will retain 49% share. The parties expected to close the deal in the first quarter of 2012.
The amount of transaction was estimated at about 5 billion rubles. However Federal Property Management Agency has not yet issued appropriate directive within the scope of the deal.
Timir project includes four iron ore deposits, namely Tayozhnoye, Desovskoye, Tarynnakhskoye and Gorkitskoye, with total commercial iron ore reserves assessed at about 5 billion tonnes of iron ore. The development of the four deposits is part of the Russia’s government program ‘Integrated Development of South Yakutia’, aimed at creating a large industrial region with well-developed infrastructure.
“We believe that Timir joint venture will successfully fit in metallurgical assets portfolio of Evraz and we retain solid optimism in respect of its development,” – Atnashev added.