Published: May 17, 2010
Deal funds development of African iron ore projects.
Russian steel company OAO Severstal has taken an interest in two African mining projects after buying a stake in an Isle of Man-registered exploration specialist.
Core Mining, which focuses on developing iron ore projects in Central and Western Africa, has exploration licenses for the Avima iron ore deposit in the Republic of Congo and the Kango iron ore deposit in the Republic of Gabon.
Severstal has bought a 16.5% interest in Core after the two parties reached an agreement that includes the option to make further investments in the company next year.
With both projects at early exploration stages, the proceeds will be used to fund the development of the mines.
Severstal’s head of strategy and business development, Boris Granovsky, said this deal is part of the company’s plan to build a portfolio of steel-making materials assets to support its markets in Europe, North America and Asia.