ENRC will supply MMC with the iron ore from Kazakhstan for 10 years
20.03.07 22:42
/REUTERS, Yekaterinburg, March 19, 07/ - ENRC, which mines ores in
Kazakhstan, signed a contract for supply of iron ore to the largest in Russia
steel combine - Magnitogorsk metallurgic combine during 10 years, is said
in the application of companies.
ENRC with the headquarters in London is the holding, which unites large
Kazakhstan metallurgic and mining enterprises, which earlier were a part of
the Eurasian industrial association.
The holding through the company EKH is under control of billionaires -
according to the version of the American magazine The Forbes - Alexander
Mashkevich, Alidzhan Ibragimov and Patokh Shodiyev.
ENRC will execute deliveries from the Sokolovsk-Sarbaysk ore mining and
processing production union (SSOPPU), the traditionally providing Magnitka
with raw materials.
The press secretary of MMC Yelena Azovtseva explained that supplies of
raw materials from Kazakhstan as usually will provide 80 percent of all needs
of the combine.
"ENRC...will carry out supplies of iron ore concentrate, fluxed pellet and
other raw materials of iron ore to MMC in volumes coordinated by two
parties," is said in the message.
"The primary approach to form prices, within the frames of contract, is their
accordance with world prices, and also indexation in each contract year."
The government of Kazakhstan owns 24.8% of ENRC, and a co-owner of
the copper monopolist Kazakhmys Vladimir Kim agreed about option for
25% of shares of EKH, that is, 18.8% of the entire ENRC.
ENRC reckons thanks to a major contract to continue investing in
modernization and expansion of SSOPPU's production, and Magnitka
considers intensifying competitiveness at the expense of the guaranteed
supply of raw materials.
[2007-03-20]