MOSCOW Russian steelmaker OAO Severstal will withdraw from its 25-percent stake in the Amapá iron ore project in Brazil, chief financial officer Alexey Kulichenko told AMM sister publication Steel First Aug. 29.
Severstal started putting its global raw material projects on ice earlier this year to reduce balance sheet risks amid bleak prospects for iron ore and coking coal prices.
Severstal paid $49 million in 2011 for a 25-percent stake in Brazil-based SPG Mineracao SA, which owns prospective iron ore licenses in Brazils Amapá state.
Kulichenko didnt say whether Severstal would sell its stake to the other owners of the project or to third parties. "We will discuss the options with our partners," he said.
Severstal senior vice president of corporate development Thomas Veraszto said earlier this year that the company wasnt planning to develop the Amapa project in the near term due to logistical challenges (amm.com, April 18).
A version of this article was first published in AMM sister publication Steel First.