LONDON Russian coking coal and steel producer Mechel OAO
is seeking investors for its ferroalloys plant in Bratsk and
considering options that could include a 100-percent sale of
the asset, AMM
sister publication Metal
Russia-based Sberbank CIB is acting as exclusive financial
adviser to Mechel and will accept nonbinding offers for
investment in the ferrosilicon plant until May 3, according to
a presentation obtained by Metal Bulletin
After submitting nonbinding bids, interested parties will be
invited to the next stage of the process, which will include
site visits, management meetings and a confirmatory
Mechel announced in September that it was divesting several
noncore assets, including the Tikhvin Ferroalloy Plant in
Russia and the Voskhod chrome mine in Kazakhstan (
amm.com, Sept. 28
). Bids for the companys
chrome assets are due this month.
Bratsk was not named among the assets announced in September.
The plant produced 69,000 tonnes of 65-percent ferrosilicon and
16,000 tonnes of 75-percent ferrosilicon in 2012 at 94-percent
capacity utilization, according to the presentation.
Domestic sales account for 15 percent of total sales, while the
rest is exported to other countries, including Japan and South
The plant is located in the Irkutsk region of southwest
Sberbank has described the asset as having the potential to
create a major ferroalloys hub in the region and offering the
shortest export route to fast-growing Asian markets.
The bank said it expects a strong rebound in ferrosilicon
prices in 2013 as a result of increased steel consumption and
following a significant drop in 2012.
Neither Mechel nor Sberbank responded to requests for
A version of this article
was first published by AMM sister publication Metal