Evraz handed ore over to Khakassia

Evraz continues to dispose of unprofitable assets. The local businessman Alexander Koleshnya is ready to byy its ore companies in Khakassia.
Sources "Kommersant" said that it acts primarily in the interests of the authorities in the region, seeking to maintain production. While basic supplies will go to the same Evraz, but in the long run can be exported to China.

Evraz has found a buyer for the members of the "Evrazrudy" mines "Abakan" and "Teya" (both in Khakassia), as well as supplying them warm LLC "Abaza-Energo" and "Teya grid," the company said yesterday. Interest in the mines showed Ltd. "Ore Khakassia". The deal, which did not disclose the amount, expected to close in the first quarter of 2014, as the parties have signed a memorandum of understanding. At the end of 2012 on the "Abakan" was produced 1.9 million tonnes of crude ore to "Teya" - 2.3 million tons, which is 39% of the total production "Evrazrudy" (11 million tons).

According to the register, "Ore Khakassia" was registered only on 6 November. Founder and CEO - Alexander Koleshnya. In addition to "Ore Khakassia" it also owns stakes in telecommunication operator LLC "Hakastelekom" Internet operator LLC "utility networks", transport company "Sayantransservis" (ladeet freight terminals) and CJSC "Industrial Transport" (controls the deadlocks and non-public way adjacent to the railway station Montenegrin Mines, which is used for coal storage). Source: "b" close to the government of Khakassia, said that in 1998-1999, Mr. Koleshnya headed the Republican Committee for Economics. Another source of "Kommersant" notes that "Ore Khakassia" worth "a number of regional business", which act in the interests of the government. Phones of enterprise Alexander Koleshni yesterday did not respond.

For Sale "Teya" and "Abakan" - part of a strategy to get rid of unprofitable assets, explain in Evraz. Loss "Evrazrudy" in 2012 amounted to 2.45 billion rubles. Since July stopped Irbinsky mine in the Krasnoyarsk Territory, in September the company sold Vysokogorsky GOK, and in October - unprofitable mines "Gramoteinskaya". In April, "Evrazruda" started consultations with Khakassia Employment Committee on the forthcoming dismissal of 74 employees Teisko mine. But in mid-August, the then interim President XAcacia Viktor Zimin said that no Abakan or Teisko mines are closed. "In an extreme case we take credit for the production of renewal We modernize the company and ourselves will sell ore to China." - Said Mr. Zimin about the prospects of "Abakan".

Andrew Tretelnikov from Rye, Man & Gor Securities believes that the transaction amount is symbolic, it is possible that the company will simply leave for the debts (amount not disclosed). Sale of unprofitable assets - a good option for of Evraz, so as merely to bankrupt them would not allow social obligations, the analyst believes. In his opinion, the "Ore Khakassia" as a small player such obligations will be much smaller, which will reduce costs in the mines, for example, by cutting wages (according to "Kommersant", up to 25% of costs). But one of the interlocutors "b" close to the deal, believes that "Ore Khakassia" "is unlikely to take unpopular social decisions."

The crude ore mines Khakass can sell on the domestic market at $ 40-50 per ton, says Andrew Tretelnikov, perhaps, the new owner will build obogvegetation power to get the added value (such plans were used in "Evrazrudy"). Now the price of crude ore below cost, recognize the sources of "b" in the industry, but notice that the build sinter plant at Khakass fields illogical: Evraz concentrating power in the region and so excessive, so it is easier to use them and try to make money on the price formula for long-term contracts . Large consumers of ore, except of Evraz, not near, but the transport arm allows you to export it to China, provided that the prices are still grow up, they say.