Mashkevich denies rumours on the planned sale of share in ENRC and rupture between partners

One of the founders of the Kazakhstan metallurgical groups Eurasian Natural Resources Corporation (ENRC), A.Mashkevich has denied rumours on a so-called scheduled deal on the sale of his share in the company to the world largest raw material trader Glencore International AG (Switzerland).

An Israeli portal, IzRus, citing a Kazakhstan official, reported in August about the intention of Glencore to buy 14.59% shares from ENRC. The portal wrote that there was carried out an audit and other procedures required and that an official signing of the deal would be announced in early 2012.

In June 2011, British Sunday Times also announced about a possibility of acquisition of one of the world largest producers and exporters of ferroalloys, iron ore, alumina and aluminium ENRC by Glencore. According to the edition, the deal might make up 12 billion pounds ($19.5 billion). However, Glencore has denied the rumours the same month.

“This is all absurd. The rumours have no grounds,” Mashkevich asserted in an interview to Kazakhstan edition “Express K”, published on Wednesday. He has emphasized that he did not plan to leave the company, which has a great potential and is one of the most upswing companies in mining and smelting sector. He thinks that the rumours spread due to restructuring of the assets, carried out at present.

“Somebody could hear about the restructuring of my stock and they might have thought that I sold the shares. We are not about to sell ENRC. We believe in its future,” Mashkevich said and noted that the current transfer of his block of shares into the name of his companies is of purely administrative nature.

Answering the question on the cause of dismissal of 2 members of ENRC’s Board of Directors, a companion of the edition said it was made to increase efficiency of the management body. “We (shareholders) asked the Board of Directors to be more efficient and focused on the development of the company for three years, but they have failed. Thus, we have voted against 2 members of the Board of Directors,” Mashkevich said. “It has concentrated on the matters, insignificant for the company, in particular relationship in the Board of Directors. We asked them to carry out restructuring, but they have failed due to the current conflict,” Mashkevich noted.

Commenting the question if he could head the Board of Directors, Mashkevich answered it is not in his competence to speak about it, it’s a prerogative of the Board of Directors. “All the news, concerning appointments in the company, will be announced after carrying out an examination of the Board of Directors,” he has added.

ENRC is a diversified group in minerals processing and production and one of the largest electric power suppliers in Kazakhstan. ENRC operates inKazakhstan,China,Russia,Braziland Africa (the Democratic Republic of Congo,Zambia,Mozambique and South Africa).

ENRC’s reserves of chrome ore are the largest among the CIS countries (183 million tons as of late 2008). They are considered to have higher content of chrome (41.4%) compared to other producers. The group has also significant proved reserves of manganese, iron ore, bauxite and coal.

Mashkevich, P.Shodiev and A. Ibragimov have 14.59% each in ENRC, Kazakhmys controls 26% and the Committee for the state property and privatization commitee of the Ministry of Finance of Kazakhstan– 11.65%.

http://newskaz.ru/economy/20110914/1887361.html

Translated by Iraida Idiyatova

 

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