Severstal Acquires 25% in Brazilian Iron Ore Exploration Company

OAO Severstal, one of the world’s leading vertically integrated steel and mining companies, announces that it has acquired a 25% stake in the Brazilian company SPG Mineração (“SPG”) owns highly-prospectiveiron ore exploration licences in the northern state of Amapa, Brazil.

The total consideration of the deal is $ 49 mln payablein performance-relatedinstallments, with part of the amount to be directed to finance the first stage of geologic exploration, whichaims to re-confirmthe attractive geologic potential of the target’s properties. Severstal has also entered into a call option agreement to purchase an additional 50% stake in this company, exercisable upon completion of certain conditions.

Severstal believes that the Amapa project has high potential with an estimated resources potential of 0.5 — 1.5 billion tonnes with an approximately 40−45 % Fe grade. Production potential is estimated at around 10−20 million tonnes of iron ore concentrate. The project is located near to a railway and a port, however, the company intends to consider developing its own logistics solution, with a few options are currently considered.

Investing in primarysteel-relatedraw materials is one of Severstal’s strategic priorities, allowing the company to develop a global portfolio of projects to diversify raw material supply and secure the future growth of the steel operations. Severstal focuses on attractive emerging markets with significantlong-termgrowth potential and favourable export logistics.

Get the free newsletter

Sign up for news, trends and equipment for sale in the lifting and rigging industry.
By signing up you agree to our Terms of Use and Privacy Policy. You may unsubscribe at any time.

Latest Products For Sale

Type Description
Equipment National Brand - Used 5x7 and 6x12 Dies - All dies meet specifications - Various…
Equipment 100 Feet of Steel Framing • Last four sections of pre-owned 1.3 mil test bed…
Equipment 300K – 62 ft. PTM SATEC • Hydraulic guards • 62’ overall length • 6’…
Equipment 100K x 40 ft. Single Range, 7.5HP Manual Control Texmate Readout, 2’ Stroke – Tube…
Equipment Refurbished 500K Lucker Wire Rope Grip • Manual Operated • Front Face Mount • 500,000…

News & Articles