Usmanov wants to unite iron ore OMPEs of RF, Kazakhstan and Ukraine

/REUTERS, Moscow, May 17, 05/ - Russian entrepreneurs Alisher Usmanov and Vasiliy Anisimov offered to governments of Russia, Ukraine and Kazakhstan a concept of foundation of Eurasian mining and smelting company on the base of five OMPEs, major suppliers of raw stuff Russian metallurgists, "Vedomosti" newspaper said on Tuesday. "Our OMPEs are dwarves in comparison with CVRD, BHP Billiton and Rio Tinto. So my partners and I think that foundation of Eurasian mining and smelting company on the base of the biggest OMPEs of Ukraine, Russia and Kazakhstan will be profitable for all", - Usmanov said. "In our opinion Mikhailovskiy and Lebedinskiy OMPEs, Sokolovsko- Sarbayskoye PU, Yuzhnyi and Inguletskiy OMPEs in the Ukraine would be able to enter such the concern. These ventures consolidation would let found the fourth in the world company on iron ore production with annual production level of 78 m. tons and with possible increasing production volume to 100 m.". On Monday the biggest in Russia metallurgical plant - Magnitogorskiy started the process of stopping one of eight blast furnaces because of problems concerned with raw stuff supply after Sokolovsko-Sarbayskiy OMPE recently stopped supplying pellets to it. "Vedomosti" says Vladimir Putin promised to discuss the problem of raw stuff supply during the meeting with Nursultan Nazarbayev in Chelyabinsk on Tuesday. "Before offering to found Eurasian mining and smelting company we coordinated this question in the administration (of Russia's president) and our country's government", - Usmanov said. "Before negotiating on Sokolovsko-Sarbayskiy OMPE we also first sent our concept for examination of the government and Kazakhstan president. We will accept any of their decisions, which they will consider necessary, and are ready to cooperate with them in the form they will choose", - he said. "We can offer to the states, on the territory of which plants of Eurasian mining and smelting company will be situated, to have "gold shares" or blocks of shares, if these states governments consider this measure necessary". Sokolovsko-Sarbayskiy OMPE is among Eurasian industrial association, representatives of which flatly refused the possibility of selling the plant, however supported cooperation with Russian partners. "At present it concerns only uniting of Mikhailovkiy OMPE and Sokolovsko- Sarbayskiy...We will unite them only if all shareholders of Sokolovsko- Sarbayskiy OMPE and Kazakhstan government approve this decision. In case of positive decision we will turn to antimonopoly institutions, and then we will think ho to do it in technological point of view", - Usmanov said. As regards Ukraine, he said initiators of the project of Eurasian mining and smelting company "offered this concept to officials", however "it's too early to make conclusions". "We will wait until Ukraine's authorities decide how rights of property in OMPEs will be realized, after that we will make our offers on joint work, purchasing assets in Ukraine", - he said. "Only having united we can represent a consolidated supplier - Russian one, against already almost dominating consumer in East Europe - Mittal Steel.". [2005-05-17]