Heavy indebted Mechel OAO (
) is in talks with several major mining companies in Asia,
including China's Baosteel, for the sale of a minority stake in its
mining unit, its CFO says, according to a Seeking Alpha report. MTL
has said it wants to refocus on its mining business and sell many
of its other non-core assets in an effort to raise around $4B, the
MTL today reported net revenue in 2012 decreased by 10.1% and
amounted to $11.3 billion compared to $12.5 billion in 2011. The
operating loss amounted to $897.9 million or -8% of the net
revenue, compared to the operating income of $1,840.1 million or
14.7% of the net revenue in 2011.
This result - added to selling pressure on commodity related
stocks after data showed slower than expected economic growth in
China - has weighed on the stock.
But on a more positive news, MTL announced signing a memorandum
of understanding with Baosteel Resources Int. Co. Ltd. The
memorandum stipulates that Mechel OAO, through its subsidiary
Mechel Carbon Singapore will supply Baosteel Resources with up to
960,000 tonnes of coking coal annually. The price will be corrected
monthly. In addition, the memorandum allows for implementation of
joint projects in mining resources on the territory of the Russian
Federation, People's Republic of China and third countries. The
sides will consider the possibility of cooperation on other fields
as well, including the possibility of collaboration with the
economic development institutes of the Russian Federation and the
People's Republic of China.
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