Why Metinvest wants to get new ore deposits

The Group Metinvest has concluded an agreement with the Canadian Black Iron on development of the Shimanovsk and Zelenovsk iron ore deposits, which are controlled by the latter. What makes the company of Rinat Akhmetov to participate in these projects?

The mining and metallurgic company of Rinat Akhmetiv and Vadim Novinsky may receive access to new iron ore deposits in the Ukraine. On Tuesday, July 23, the press centre of Metinvest (Akhmetov’s SKM owns 71.25%, Novinsky’s Smart holding company – 23.75%) reported about conclusion of an agreement with Canadian Black Iron on possible participation in joint-stock capital of the latter. The price of the issue is feasibility study for over $1 billion, 49 % of Black Iron and possible investments into development of Ukrainian ore deposits, licensed by the Canadian company, in the amount of $20-536 million.