ENRC to diversify business at end of Kazakhmys affair

/INTERFAX, London, May 14, 08/ - Eurasian Natural Resources Corp. (ENRC), specializing in ferrochrome, iron ore and aluminum production, plans to diversify its business in other metals, when the Board of Directors took the decision not to make official proposal to Kazakhmys Plc, agency Bloomberg informed. As Johannes Sittard, the general director of ENRC claimed, during the telephone conference, the company can purchase zinc and lead assets in Kazakhstan and also may expand in "non-steel" sector, including uranium and coal. The company had already spent more than $500 m. for purchasing of metallurgic companies in China and Brazil after the IPO. "We can plan bigger acquisitions than that we announced before, - J. Sittard told. - We want to consolidate in Kazakhstan and expand our business in other metallurgic spheres". ENRC shares quotes grew by 2.9% - 1417 pennies on Wednesday. As informed, ENRC after conduct of IPO purchased Serovskiy Ferro-Alloy plant for $210 m., 50% block in Brazilian iron-ore Bahia Mineracao Ltd for $300 m. and Chinese Xinjiang Tuoli Taihang Ferro-Alloy Co. Ltd for $14.5 m. On Tuesday, it was announced that ENRC`s Board of Directors decided not to make proposal on purchase of the major Kazakhstan copper producer Kazakhmys Plc for the time being. On Friday, the copper corporation rejected ENRC preliminary offer on purchase, referring to low price of the offer. The total sum of the offer made 7.1 bn. of pound sterling ($13.7 bn.). [2008-05-15]