Mechel has announced the closure of the deal on selling to Gazprombank AO the 49% share in the Elga coking coal deposit development project for RUB 34.3 billion (USD 535.8 million).
According to the agreement, Mechel sold to Gazprombank 49% of shares in Elgaugol OOO, the project operator company and owner of its subsoil license, 49% of shares in Elga-Doroga OOO which owns the Ulak-Elga railway, and 49% of shares in Mecheltrans Vostok OOO which is the rail’s transport operator.
The 321 km Ulak-Elga line provides railway access to the Elga coking coal deposit and the line will be connected to Baikal-Amur Mainline. The construction of the line cost about 70 billion rubles (843 million euros).
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