Mechel OAO, a leading Russian mining and metals company, has recently sold two ferroalloy assets to a Turkish company for $425 million. Under the deal, the Yildirim Group will own the Voskhod mining plant in Kazakhstan and Tikhvin ferroalloy plant in Russia; regulatory approval by Kazakh and Russian agencies are pending.
Mechel CEO Evgeny Mikhel cited a strategy based on “restructuring the group’s assets; the funds will help the company deleverage and continue to finance its priority development projects.”
The Tikhvin ferroalloy plant, located in Tikhvin in Russia’s Leningrad Region, is a modern facility with a capacity of up to 120,000 tons per year (t/y) of high-carbon ferrochrome. The plant uses the chrome ore concentrate produced from the Voskhod mine and mill.