Coal mining company Belon rejects export in favor of its new owner – MMK. To provide own needs by own raw materials is a strategic task for the steel company – they say at MMK. It is expected that in perspective Belon will be able to cover 70% of MMK’s requirements in coal. According to reports Belon, the company exported only merely 30% of production in Q3 2009.
MMK has got control over Belon in March 2008 when it acquired 50% share in Onarbay Enterprises Ltd, which owns 82.6% share of Belon. In October 2009 MMK increased its share in Onarbay Enterprises to 100%.
After this deal there is merely no independent suppliers of high quality coal in Russian market, though before recession a lot of local steel companies considered coal mining is not their business. But even before the deal about two thirds of Russian coal were controlled by Evraz, Mechel and Severstal.
Now when steel market starts gradually recover, steelmaking companies with high vertical integration are winning – today a sufficient part of steelmakers’ profit is formed at mining stages of production chain.
Friday, March 5, 2010
Raw materials
Source:
RBC Daily
