Russia’s Severstal halves stake in Brazilian iron ore project

MOSCOW, Feb 27 (PRIME) -- Russian steelmaker Severstal has sold 12.8% in SPG Mineracao SA, which owns licenses to explore iron ore deposits in the northern state of Brazil, decreasing its stake to 12.2%, the company said in a report seen by PRIME on Thursday.

In September 2013, the company exercised an option to sell the 12.8% stake in SPG Mineracao back. The company also cancelled an option agreement to buy additional 50% in the company.

Last year, the company announced plans to withdraw from the project. “Our decision on Amapa remains the same. It is more logical for us to withdraw from the project, we are looking for a buyer for our minority stake,” CEO Alexei Mordashov said in a conference call, adding that the company continues looking for a partner for the Putu project in Liberia.

“We consider the Putu project as a very good deposit in a good condition. But we have already said that it is a significant project and it is better to finance its development with a partner, not only from our own funds. At the end of the first quarter or the beginning of the second quarter, we plan to prepare a feasibility study of the project. After that, it will be easier to talk with partners,” Mordashov also said, adding that the company has no plans to sell other significant assets.

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