ENRC will supply MMC with the iron ore from Kazakhstan for 10 years

/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]