Glencore and ENRC are interested in Mechel’s assets in Kazakhstan

Glencore International Plc studies the purchase of the ferroalloys assets in Kazakhstan belonging to Mechel OJSC. Glencore is mainly interested in the Kazakh assets of Mechel. Mechel is trying to sell the assets for which ENRC also intends. Now the assets of Mechel in Kazakhstan are the Shevchenkovsky nickel deposit and the chromite ore deposit “Voskhod”. Mechel, the largest steelmaking coal producer in Russia, plans to sell the assets in Russia, Kazakhstan and the Eastern Europe. The company does it to reduce the $9.3 bln of the net debt after the price fall for raw materials. The purchase of Mechel’s assets will allow Glencore to expand the production of ferroalloys after the purchase of Vale SA last year. ENRC already produces ferroalloys in Kazakhstan.