At the final stage of the transaction, MMK increased its stake in Onarbay Enterprises, which owns 82.6% of Belon, from 50% to 100%.
The transaction is said to secure stable coking coal supplies to MMK for its steel smelting operations, including supplies of deficit coal grades. The acquisition will also allow to continue implementing the investment programme of Belon. Supplies from Belon will account for the bulk of MMK requirement of coking coal concentrate.
Victor Rashnikov, chairman of MMK, said: “This transaction brings MMK self-efficiency in strategically important input material to a new level. We are sure that this acquisition will strengthen our competitiveness in the current situation and in the long-term prospect.”
In March 2008, MMK acquired 50% interest in Onarbay Enterprises.