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.
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.
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