Mechel to solve its credit problems by the sale of part of its share in the Elginskoye deposit

The leading Russian mining and metallurgical company Mechel negotiates on the sale of a part of the company’s share in Elgaugol, which owns a license for development of the largest coking coal deposit in Yakutia.

According to the ITAR-TASS, the largest metallurgical company of South Korea Posco and the largest state-owned steel-smelting company of China Baosteel are interested in the purchase of a share in the  Elginskoye deposit.

According to executive secretary of the Russian-Chinese chamber, Sergei Sanakoev, the negotiations of Baosteel with Mechel have lasted for a half of year already. The Chinese company is interested in from 26% to 50% in the Eginsky project. At the same time, Baosteel is interested not only in purchase of a share in Elgaugol, but also in the joint development of infrastructure, including the construction of a terminal for 3 million tons per year in port of Vanino, Sanakoev said.