Severstal to sell two Siberian coal mines to Arcelor-Mittal

Moscow, Jan 31 (UNI) Severstal, leading Russian steel producer, today said it has signed a 650-million-dollar deal with L N Mittal-led Arcelor-Mittal for selling two of its West Siberian coal mines.

Under the deal, Severstal, which is an international mining and steel company that produced 17.6 million metric tonnes of steel in 2006, will sell Arcelor-Mittal its 97.6 per cent stake in the Beryozovskaya mine along with its 99.35 per cent stake in the Pervomaiskaya mine, RIA Novosti news agency reported.

Both mines are located in the Kemerovo Region and produce coking coal, the steel maker said.

''This is a good deal for Severstal, allowing us to focus on the development of existing, strategically important assets, as well as invest in new coal projects,'' General Director of Severstal Resurs, Roman Deniskin said.

Severstal Resurs manages the company's mining assets.

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